Fascism In America

Family Security Matters

It is often argued by critics of the Obama administration that it is  socialistic, i.e. expanding governmental authority over the means of producing  and distributing goods. Alas, there is something to be said for this point of  view. As I see it, however, a more accurate way to describe the Obama government  is corporatism or a political system in which the principal economic functions  are designated and given favorable treatment. The most appropriate way to assign  meaning to this phenomenon is fascism.

During the Nazi period firms such as Mercedes Benz and Krupp Steel was given  tax advantages and privileges denied other German companies. Not only did these  companies favor Hitler’s regime, but they were favored by the regime. This  inextricable nexus benefited both parties since privilege was conferred by  government which in turn bought political and economic support.

The recent U.S. government deal to avert the fiscal cliff by legislating  income tax and capital gains hikes obscured another part of the arrangement: 75  special interest tax breaks – a list of corporate interests that receive tax  perks and are not publicly revealed. Nonetheless, some of this special  treatment has leaked. For example, there is an accelerated tax write off for  owners of Nascar tracks. There is a tax credit for companies operating in  American Samoa, including the StarKist factory owned by Nancy Pelosi’s husband.  Distillers received a $222 million rum tax rebate. Most notable, film and  television producers can expense the first $15 million of production costs  incurred in the United States. This Hollyood special will cost the taxpayers  $430 million over the next year. It obviously paid for Hollywood to back  President Obama in the last campaign.

As one might guess, renewable energy in the form of wind and algae received  $2 billion of credit even though the nation is going through a natural gas  drilling boom. The more one is green, the more green bucks flow. Needless to  contend, the total cost will be far greater than these estimates. And even  though the stock market hasn’t yet revealed its sentiments about this shady  deal, this misallocated capital will assuredly slow economic growth.

The question that remains puzzling is the silence of the left about this  corporate welfare scheme. Where are the voices of indignation? What happened to  the outspoken Occupy Wall Street crowd? Does Obama get a pass for his soothing  rhetoric?

Even if one believes tax increases on “the rich,” those earning over  $450,000, is warranted there certainly isn’t a constituency for corporate greed.  On the one hand, the administration acknowledges dramatically increased  expenditures that must be curbed; on the other hand, it maintains expenditures  be damned. Designated friends of the Obama government deserve special treatment  because they supported him when he needed their help. If this isn’t a classic  display of fascism, what is it?

Since the word fascism evokes fear and anger, it is rarely used. But as I see  it, the word does describe what is going on. This goes beyond “crony  capitalism;” in fact, it doesn’t resemble capitalism. In this system markets  don’t work at all; it is who you know and the kind of influence you can  exert.

It is not coincidental that the Obama administration pushed aside the primary  bond holders of General Motors in an effort to give the Union of Automobile  Workers (UAW) effective control of the company. In this instance, as in so many  other cases, the president secured the votes he needed for reelection. The union  did not forget what he did for them.

This kind of corporatism eats away at the public confidence in government.  After the bill was struck, the president had the temerity to praise the  legislation by noting: “further reforms to our tax code so that the wealthiest  corporations and individuals can’t take advantage of loopholes and deductions  that aren’t available to most Americans.” By any interpretation this is a bald  faced lie. The special privileges granted designated corporations represent the  loopholes and deductions unavailable to the rest of Americans. Where is Orwell  when you need him? In this administration you say the opposite of what you do.  Count on public ignorance to promote the fraud. Speak the language of FDR and  apply the principles of Bonnie and Clyde. The public may not realize it, but  this fiscal cliff deal makes it clear that fascism has come to America.

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