Corporatism – not Capitalism

Goldman Sachs is buying 20% of the stocks in the Danish nationally owned Gas company DONG. As a result the socialist government is split in half as the Socialist People’s Party refuse to force their members to vote against their conscience (which would also be unconstitutional as the individual members of Parliament are only bound by their obligation to their voters and not to their party or the government), and the Social Democrats thus throw then out.

As an Anarchist/Libertarian I should be thrilled about this right? The ownership of the energy production and distribution should be on state hands – let the market take care of that.

Only problem is – this is not a free market, and neither will it be if 20% of the stock is sold to Goldman Sachs. First of all – Goldman Sachs investment bank is a creature of the Corporatist leadership we have in the west. Goldman Sachs only exist because of crony Capitalism, because of their friends in Washington. Goldman Sachs was bailed out for $4.3 billion in 2008. So now they can use their market advantage, paid for by the American tax payers, to buy a company that has been supported by the Danish state to build up a monopoly on Natural Gas, with Danish tax payer money – and have the good fortune to have the Danish state as a co-owner – i.e. ensuring that that the company cannot possibly go bankrupt no matter how lousily they run it (like the Scandinavian Airline Systems amongst other monstrosities).

We don’t even have to talk about business methods of said company – this above is enough to make the sale an excellent example Corporatism. Not Capitalism – in a Capitalistic system Goldman Sachs would have gone belly up years ago, or have been forced to compete on equal terms with others in their market. They haven’t – the taxpayers (across the west) have payed their ride and their bonuses.

Socialists and Libertarians should all be appalled.




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