Q: What do you mean by Sociofascism
A: For lack of a more euphonic word, that's what I am calling the synthesis of Socialism and Fascism characteristic of American and to a lesser degree Canadian, Australian, New Zealand, and European government policy.
Q: How can you sythesize Socialism and Fascism? Aren't they mutually-exclusive?
A: No. Unfortunately, Western cultures tend to model everything in terms of false opposites. Socialism and Fascism are NOT opposites. But first we need to define Socialism and Fascism, especially since the words are often misused.
Q: What do they mean?
A: Socialism refers to a system whereby the government controls key industries and properties ostensibly in exchange for an implied guarantee of a certain amount of economic security. It does NOT necessarily imply what Americans call welfare, though it has come to that in many countries. The most common perks are government-subsidized health care and old-age pensions.
Fascism refers to a cozy relationship between government and certain politically-favored, politically-connected businesses. It is sometimes hard to distinguish big business from government since business leaders may hold office or own candidates, while government leaders may be major stockholders or former executives of big business. Historically, in Mussolini's Fascist Italy and in most Fascist Asian countries (Fascism is the most common system in the Far East), governments have been relatively tolerant of small businesses, although they might be attacked if they got too big and started competing with politically-protected corporations. The Euroamerican Fascist model, on the other hand, is hostile to small businesses in general.
Q: Where do you see Fascism?
A: Look at our monetary policy. By keeping interest rates artificially low, the Central Banks are wiping out small businesses, which, unlike big business, are not able to continue operating at a loss and rolling their debt over and over. Although this policy may catch up with bigger businesses, smaller ones are wiped out first, as per the intent of the policy.
Now look at tax policy. The United Kingdom's 40% tax rate on inheritance guarantees that family-owned businesses won't last very many more generations, by design. At the bidding of Sociofascist policy-makers who claim that big businesses are more efficient and who refer to the tolerance of small family businesses in Europe as a symptom of "eurosclerosis", Tony Blair and his Labour Government are intentionally wiping out family businesses that had previously lasted centuries.
Extremely high sales taxes such as occur in British Columbia, Canada, and are becoming common elsewhere, wipe out small independant retailers, because profit margins are too squeezed to support small boutique-type operations.
Now look at regulation. For a country that postures as the land of rugged individualism and cowboy capitalism, the USA certainly has a lot of business regulation. In many east coast cities, numerous types of small businesses require special licensing which comes with regulatory strings attached. In Seattle, the city council has tried to impose punitive regulations on businesses at the level of the espresso cart operators who they are clearly trying to get rid of in favor of Starbucks and other politically-connected corporations.
In addition to wiping out small businesses, Sociofascist governments subsidize their economic partners. For example, www.goodjobsfirst.org documents so-called enterprise zone (and other special zone) preferential tax treatments, free or reduced-price land grants, general grants, bond financing deals, infrastructure and site preparation assistance, job training and recruitment grants, property tax exemptions and abatements, and sales tax abatements and refunds specifically for the benefit of Wal*Mart. Wal*Mart indirectly receives another kind of benefit, but I'll discuss that under the Socialism topic.
Almost none of these economic benefits are available to small businesses. Hence small businesses suffer a double-whammy of increased burden of impact of taxes and regulation, and increased competition from beneficiaries of government favoritism.
Q: Where do you see Socialism?
A: Australian, New Zealand, Canadian, and European Socialism is generally the old-school kind: subsidized and heavily-regulated health care, old-age pensions, and unemployment benefits. American Socialism has some of these features, but bulk of the American programs showed up a little later, during the Vietnamese War. As was the case with Socialism since its beginnings, the goal was largely to supress familial concerns about losing breadwinners during wars by offering them a welfare safety net. Some of these programs openly had a standard called no man in the house. The goal was to convince women that they didn't need men. The so-called Feminists, in reality crytpo marxists, were paid to convince women to get taxable jobs to increase the taxrolls, bring down the cost of corporate labor, and economically displace draft-bait. The so-called radical feminist (a euphemism popular in neoconservative cicles), in reality lesbian-separatists, were drawn into the welfare bureaucracies and given free rein to (ab)use their power to break up families and punish men for having relationships with women.
Another aspect of Socialism which started in the USA and is now spreading throughtout the rest of the world takes the form of government-mandated hiring preferences. The opinion of the policymakers is that businesspeople are all a bunch of racists and sexists who could lower their payroll costs if only they would hire more people of color and women. One of the policy goals is to obstruct what policy-makers call the wage-price spiral, for which they blame inflation that in fact they create themselves. The policy-makers want to believe that women and people-of-color will work harder for less money than lazy, greedy white males.
An old but subtle aspect of Socialism which is starting to dawn on policy-makers is that businesses can tranfer some of their labor costs to the public in general by hiring people whose wage needs are tempered through the welfare system.
This is the biggest financial scam since fiat money.
Large corporations such as Wal*Mart, Marriott, Krispy Kreme, and others are hiring welfare recepients directly through social welfare agencies, complete with retention bonuses paid by US taxpayers through the US government. This was sold to the US public as the end of welfare as we know it, but the truth of the matter is that not only are US taxpayer's still on the hook for someone else's child-care bill, food stamps, subsidized housing, subsidized healthcare, and other perks.
Q: Why do Sociofascists hate small businesses?
A: Mostly because they want to protect their big-business pets from competition. While small businesses are more vulnerable to draw-downs in their capital, they are potentially much more nimble in adapting to changing conditions than old, ossified megacorps, and there are potentially a lot more of them, so even if most of them fail, a few highly successful ones may give the old school a run for its money. A lesser but still significant issue is one of control. Large corporations are easier to regulate, because the large number of employees without common interests makes it risky to try to keep any secrets from the government (not that it doesn't happen anyway). Small, closely-held companies are very hard to regulate because it is much easier to maintain PRIVACY.
Q: What are some of the consequences of Sociofascism?
A:
- Europeans are losing their family small businesses to high taxes.
- Farming communities in Europe are being shut down BY POLICY to be replaced by international corporations using imported labor. This already happened in the USA. High estate taxes are helping to achieve a goal that has already been ordained.
- College students, elderly with inadequate pensions to cover their expenses, housewives trying to earn money for their children, people whose careers have been effectively ended by dramatic changes in the economy, and many other types of middle-class people who need entry-level employment are effectively shut out of many types of jobs, especially in the case of jobs placed through social welfare agencies which serve only people of specific races or gender.
- Americans in general are shut out of a lot of types of jobs that are being outsourced to foreign countries where employers have no tradition of paying healthcare insurance premiums. Either taxpayers pay the bill as is the case in the richer of the traditionally socialist countries, or workers are very much on their own as is the case in most countries (including some of the poorer but nominally socialist countries).
- Health care costs in the Western world are skyrocketing due to carte blanche subsidies for the elderly. My step-grandfather, for example, has had 9 CT scans over the last few months over trivial matters. If nothing else, the massive demand for health care so that we can treat old age as a disease is alone causing the price of healthcare to skyrocket. Don't even suggest price controls because they don't work: if you try to regulate price without increasing supply or decreasing demand, then all you accomplish is to create shortages. Many countries have tried this, and patients end up dying waiting for surgerywhile triple-bypass surgery is authorized for people in their 90s.
- Attitudinal training has completely replaced knowledge and skill in the public school system. The American education system is already the laughing stock of the whole world, but the system is being aggressively exported to other English-speaking countries. Australia for example is phasing in the catastrophic Outcome-based Education system.
- The middle class is being replaced BY POLICY with a subsidized, dependant class unable to defend its own rights. This is resulting in a majority that is more compliant if not terribly law-abiding. Rights like freedom of speech become moot if your average citizen is a government-corporate worker who is barely literate and who only reacts to the laugh track on his favorite cable television shows.
Q: How can we defend ourselves from Sociofascism?
A: Not all of us can, and not all of us want to. The first step is to be perfectly clear about this. Friedrich von Hayak wrote Road to Serfdom and dedicated it to socialists of the Left and the Right after he had already become persona non grata in England for warning his colleagues of the dangers of creeping Socialism and government intervention. His mentor Ludwig von Mises got even worse treatment in the USA.
We can not save the world; many who have gone before us tried and failed.
Therefor, do not waste your time trying to get the government of whatever country you are in to change its path. It would be like trying to stop the Titanic from achieving its destiny by placing your body between the ship and the iceberg.
Before you can help anybody, including yourself, you need to get your own house in order. That means achieving enough economic independence that you are not completely beholden to the Sociofascist State. If I could type fast enough (but I can't) I could keep several blogs busy on that topic, but I will try to include some helpful hints on this blog.