Not only Catholic societies are equipped with a very effective weapon - badmouthing - to destroy all free market innovation, they are also equipped to destroy the free market as well and replace it by their natural system of economic organization, namely, corporativism and authority.
Over time, several different episodes of the kind described in my earlier post will occur in a free market. Each time a businessman or his company is the target of rumours, calumnies, unfounded allegations - which will never be proved -, his competitors and the public at large are claiming for the government to intervene, fiscalizing and regulating the industry, so that no further ilegalities of the kind will ever be commited again.
In a democratic society in which politicians have to respond to public clamours in order to be re-elected it is only a matter of time until the government decides to regulate and fiscalize the industry, which marks the beginning of the end for the reign of market freedom.
A group of politicians and bureaucrats will be set up to enact the laws that will regulate the sector. This will be done with the willing assistance of representatives from the industry. This is a crucial moment in the process, the moment when government regulators first meet with industry representatives for, from now on, they will be the main actors in that sector of economic activity, replacing the free market.
As the industry is now regulated and fiscalized, new rumours, complaints, calumnies and unfounded allegations will soon arise from those dissatisfied businessmen who see their competitors earn higher profits than they themselves do. And with government now involved in the affairs of the industry, an useful and ready argument is now made available to all to badmouth competitors and regulators. The argument of corruption.
More regulations and more inspectors (fiscais, as the Portuguese like to call them) are needed to put an end to the corruption prevailing in the sector. As more laws are enacted and more fiscalizing is done, the greater a mirage becomes market freedom. Instead, as this process runs to an end, where there existed a free industry there is now a corporation. Businessmen in the industry are now subject to all forms of prescribed behaviour telling them what they can do and what they cannot do, how they can do it and how they cannot do it, under the supreme authority of a group of politicians and bureaucrats from government.
Over time, several different episodes of the kind described in my earlier post will occur in a free market. Each time a businessman or his company is the target of rumours, calumnies, unfounded allegations - which will never be proved -, his competitors and the public at large are claiming for the government to intervene, fiscalizing and regulating the industry, so that no further ilegalities of the kind will ever be commited again.
In a democratic society in which politicians have to respond to public clamours in order to be re-elected it is only a matter of time until the government decides to regulate and fiscalize the industry, which marks the beginning of the end for the reign of market freedom.
A group of politicians and bureaucrats will be set up to enact the laws that will regulate the sector. This will be done with the willing assistance of representatives from the industry. This is a crucial moment in the process, the moment when government regulators first meet with industry representatives for, from now on, they will be the main actors in that sector of economic activity, replacing the free market.
As the industry is now regulated and fiscalized, new rumours, complaints, calumnies and unfounded allegations will soon arise from those dissatisfied businessmen who see their competitors earn higher profits than they themselves do. And with government now involved in the affairs of the industry, an useful and ready argument is now made available to all to badmouth competitors and regulators. The argument of corruption.
More regulations and more inspectors (fiscais, as the Portuguese like to call them) are needed to put an end to the corruption prevailing in the sector. As more laws are enacted and more fiscalizing is done, the greater a mirage becomes market freedom. Instead, as this process runs to an end, where there existed a free industry there is now a corporation. Businessmen in the industry are now subject to all forms of prescribed behaviour telling them what they can do and what they cannot do, how they can do it and how they cannot do it, under the supreme authority of a group of politicians and bureaucrats from government.
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