Recommend this interview with John Medaille, below the blurb for his book. An exceptionally succint critique of both capitalism and big government (and socialism for that matter).
- Wages are set by power, not the market - therefore capitalism results in lower wages than necessary to have a stable, sustainable economy
- Therefore, big government steps in with tax and spend - a temporary, inadequate fix
- The result is too overwhelming, destabilising concentrations of wealth - in big business and big government
- Modern economics fails because it ignores justice, specifically distributist justice and just wages
- Just wages - wages sufficient to maintain demand in the economy without e.g. excessive credit - would keep supply and demand in equilibrium far better than the current system, and would have avoided the economic collapse we are witnessing
- A potential fix is a more distributist economy - productive power spread more evenly across the economy so that just wages are paid and the economy is stable and sustainable
Big corporations and big government grow together and feed off each other. Where wealth is concentrated, you will always see a concentration of political power with the result that the government grows in size, expense, and power. Big business and big government always go hand in hand...
Capitalism tends to concentrate property in the hands of a few, thereby choking off the market, and socialism continues this by concentrating ownership in the hands of the state. In practice both end up with control of the most important resources of the nation in the hands of a few bureaucrats, über-managers, who claim to represent the interests of the nominal owners, be they the shareholders or the general public, but who actually control these resources for their own benefit. Distributism, on the other hand, seeks to build an ownership society of free men and women, conscious of their rights and able to defend them.