The more corrupt the state, the more numerous the laws.
Ever since I started writing about what is happening in the world around me, my primary theme has been that the root cancer at the core of the U.S., and indeed global economy, is cronyism and an absence of the rule of law when it comes to oligarchs. In the U.S., this cronyism is best described as an insidious relationship between large multi-national corporations and big government to funnel all of the wealth and resources of the nation to themselves at the expense of everyone else. In a genuine free market defined by heightened competition and governed by an equal application of the rule of law to all, the 0.1% does not aggregate all of a nation’s wealth. This sort of thing only happens in crony capitalism, which is basically nothing more than complete and total insider deals to aggregate newly created money into the hands of the few.
The following profile of Washington D.C.’s so-called “boom” from the St. Louis Post-Dispatch pretty much tells you all you need to know. While I think the tone of the article is absurd considering this is no “economic boom,” but merely parasitic wealth extraction on a unprecedented scale, it is still quite telling. It is no coincidence that as D.C. has grown wealthier, the nation has become much, much poorer. Key excerpts below:
The avalanche of cash that made Washington rich in the last decade has transformed the culture of a once staid capital and created a new wave of well-heeled insiders.
The winners in the new Washington are not just the former senators, party consiglieri and four-star generals who have always profited from their connections. Now they are also the former bureaucrats, accountants and staff officers for whom unimagined riches are suddenly possible. They are the entrepreneurs attracted to the capital by its aura of prosperity and its super-educated workforce. They are the lawyers, lobbyists and executives who work for companies that barely had a presence in Washington before the boom.
At the same time, big companies realized that a few million spent shaping legislation could produce windfall profits. They nearly doubled the cash they poured into the capital.
Sorry these aren’t “entrepreneurs,” they are parasitic opportunists.
At Cafe Joe, a greasy spoon near the National Security Agency in suburban Maryland, software engineers with top-secret clearances merely have to look at the place mats under their fried eggs to find federal contractors trying to entice them away from their government jobs with six-figure salaries and stock options. The place-mat ads cost $250 a week. They are sold out through 2014.
During the past decade, the region added 21,000 households in the nation’s top 1 percent. No other metro area came close.