Rent-Seeking Captains of Industry and Commerce give Capitalism a Bad Name
Once upon a time you lived, worked and died all within a short walk from each other. In feudalism people owned land and lived well. The landed aristocracy. And other people (the peasants) worked the land. But did not live as well as those who owned it. For it was back-breaking work for long hours with no respite except in death. For those who worked the land belonged to the land. Just as the trees and fields and rivers did. Peasants belonged to the land and the land belonged to the landowner. The peasants couldn’t leave. And they couldn’t work hard to provide a better life for their children. For they were bond to the land as their patents were. With no choice but to work the land like their parents did.
This was how life was before we started to use power to make our work easier. We had long been using animal power to do things we didn’t have the strength or the endurance to do. Such as pulling a plow. Or a wagon full of goods. Or to travel great distances more quickly than we could by walking. Harnessing the power of moving water changed all of that. For a river moves constantly. And when you place a waterwheel in moving water you can convert the linear motion of the water into rotational motion. This rotational motion could turn a main shaft running though a factory. Belts and pulleys could transfer this power to workstations throughout the factory floor. And these powered workstations could do far more work than a person could. Lumberjacks could transport logs down a river to a lumber mill. Where a waterwheel could spin a saw that made lumber out of those logs at such a rate that great cities could arise around these mills. Cities with other factories powered by waterwheels. And homes.
So it’s no surprise that our early cities grew up on rivers. Both for water power. And the ability to use them to ship bulk goods. Ship transport. Something even animals weren’t good at. It is in these cities that wealth and political power grew. Centers of industry and commerce. Creating great wealth for those who controlled the resources that made all of that possible. So another aristocracy grew. Rent-seeking captains of industry and commerce. Who give capitalism a bad name. Who use their political power to maximize their profits. And buy favors from those in power to protect their particular interests. Such as using the power of government to create monopolies for themselves. But advancing technology made that harder to do. Especially the steam engine. And the railroad.
The Steel and Heavy Manufacturing Industries required a Massive Infrastructure and Regionally Located Raw Materials
Control of rivers, ports and harbors provided a great opportunity to amass wealth at other people’s expense. For when economic activity centered on water it made land around that water very valuable. Which concentrated wealth and power on the rivers. Until the steam engine replaced the waterwheel. And the railroad provided a way to transport people and goods inland. So not only did cities grow up along the waterways they grew up along the rail lines. Those controlling these resources still had great wealth and power. But they also offered competition. And more economic liberty. For while there can only be one Tennessee River flowing through Chattanooga, Tennessee, there can be more than one railroad running through Chattanooga. Which made Chattanooga an important city to hold during the American Civil War. For there was a great rail junction in that city. Giving anyone who controlled the city access to any part of the Confederacy.
While the steam engine and railroad allowed industries to grow anywhere in the country some industries still clustered in regional areas. Such as the steel industry. It required three ingredients to make steel. Iron ore, coke (coal cooked into hard charcoal briquettes) and limestone. To make steel you use 6 parts iron ore, 2 parts coke and 1 part limestone. Iron ore was plentiful around Lake Superior. Because it takes a lot of iron ore and a lot of iron ore is located around Lake Superior the steel makers built their mills long the Great Lakes. In Milwaukee. Chicago. Gary. Detroit. Toledo. Cleveland. Or in places like Pittsburgh where coal and iron ore deposits surround the city. These cities made up the Manufacturing Belt. Places with access to bulk ore shipping (on Great Lakes freighter or river barge). And where the steel mills arose so did heavy industry that built things from that steel. From structural steel. To automobiles.
For a while these new industries dominated the economic landscape. Big, heavy industries that couldn’t move. Concentrating money and political power. Giving rise to organized labor. Who took advantage of the fact that these heavy industries could not move. Negotiating lucrative union contracts. With generous pay and benefits. Raising the price of steel and the things we made from steel. Like automobiles. Making the rank and file like rent-seekers of old. Looking to personally benefit from their near-monopoly conditions. Like those early captains of industry and commerce. Life was good for awhile for the rank and file. Who lived very well. And better than most American workers. Thanks to those monopoly-like conditions in these steel and heavy manufacturing industries. Allowing them to charge high prices for their goods to pay for those generous pay and benefits. As there was no competition. For the steel and heavy manufacturing industries required a massive infrastructure and an abundant supply of regionally located raw materials, making it very difficult for a new competitor to open for business. At least, in the United States.
High Costs and Low Efficiencies have shuttered most of America’s Steel Making Past
Foreign competition changed all that. And large ocean-going ships. So new industries in other countries with lower labor costs could manufacture these goods and ship them to the United States. And did. Challenging the monopoly-like conditions of the rent-seeking steel and heavy manufacturing industries. So the rent-seekers turned to government for protection. And got it. Import tariffs. Which raised the price of those imported goods to the higher price level of the domestic goods. Which did two things. Insulated the domestic manufacturers from market pressures allowing them to continue with the status quo. And forced the foreign manufacturers to find less costly and more efficient ways to make their goods to counter those import tariffs.
So what happened? Technology advanced in these industries overseas while they stagnated in the US. The US didn’t invest in new technologies like they did in the previous century to find better ways to do things. Because they didn’t have to. While the foreign competitors worked harder to find better ways to do things. Because they had to. As they weren’t insulated from market forces. The Japanese invested in robotics. Transforming their auto industry. Improving quality and lowering costs. Making their cars as good if not better than the Americans did. And selling them at a competitive price even with those import protections. So what did these US actions to protect the domestic manufacturers do? Changed the Manufacturing Belt to the Rust Belt.
The big steel cities in America are no more. High costs and low efficiencies have shuttered most of America’s steel making past. Gone is the era of the sprawling steel mill. Today it’s the minimill and continuous casting. Small and efficient steel mills with small labor forces that can make small batches. Thanks to their electric arc furnaces that are easy to turn on and off. Unlike the big blast furnaces that took a while to reach operating temperatures and when they did they didn’t shut them down for years. Making it difficult to adjust to falling demand. Like the minimills could. Which helped save the steel industry by finally adopted technology that allowed it to sell at market prices. Making it harder for the rent-seekers these days. But better for consumers. Because of this relentless march of technology. That allows us to continuously find better ways to do things.
Tags: animal power, capitalism, captains of industry and commerce, coke, factory, find better ways to do things, generous pay and benefits, Great Lakes, heavy industry, industry and commerce, Iron ore, Lake Superior, Limestone, Manufacturing Belt, monopolies, rail lines, railroad, rent-seeking, rotational motion, Rust Belt, ship transport, steam engine, steel, steel industry, water power, waterwheel, wealth and power
Wealth Creators Freely met and Made Trades they felt were Mutually Beneficial
The human race started as subsistence hunters and gatherers. Our ancestors spent all of their time hunting. And gathering. If they were successful they propagated our species. Making it possible for us to be here. If they weren’t their family tree was a barren one.
So that was life. A rather short and brutish life. Except that part about propagating the species. And we lived that way for some 2 million years. Eating. Fleeing. Fighting. And, of course, propagating. As we grew more intelligent we did a lot of things that ushered in the modern world. But perhaps the single greatest advancement that brought on the modern age was our evolution from hunters and gatherers to farmers. Everything followed from this. We learned to live together in cities. And we increased crop yields so much we created food surpluses. Which gave us time to do other things. It allowed the rise of artisans. A middle class. That built things and traded them for their food. These new goods helped produce more food. And the greater food production allowed more people to do other things. Creating a complex economy. Where people traveled to market with the things they created. And traded them for the things other people brought to market. We traded things of value for other things of value. Because these traders, these wealth creators, each created something of value.
These wealth creators freely met and made trades they felt were mutually beneficial. Each felt they came out a winner after their trade. For they each received something they valued more than what they traded away to get it. Which means going to the market was where to go to get valuable things. Which provided an incentive to make more things so you could take them to market. And trade for things you valued more. As everyone did this the overall wealth in the economy increased. People specialized. Focused on what they were good at. To produce as much as possible so they could trade for more. And because they specialized they improved quality. And used the available resources as efficiently as possible.
Rent-Seeking People took more Wealth from the Market than they Brought to It
There are many competing schools of economics. But if you go back to where it all began what you find is laissez faire free market capitalism. Where the profit incentive drove people to create wealth. Which they then traded for the things they didn’t make. Then things started to change. Some people didn’t want to work hard and innovate. And bring new things to market. What they wanted was influence. Privilege. And a rigged market. So they could get more in trade than the value of the things they produced for trade. One of the first vehicles used for this was the artisan guild.
In medieval Europe if you wanted to be a blacksmith you had to join a guild. If the guild accepted you a long apprenticeship awaited you. But the guilds denied more people entry than they allowed. Why? To limit competition. So blacksmiths could keep their prices high. At any given time a city, town or village had a very limited number of blacksmiths. The guild worked to keep it that way. For the last thing these blacksmiths wanted was other blacksmiths opening up shop. Putting more goods onto the market. And lowering prices. No, the guild wanted to fix prices above their market value by keeping would-be blacksmiths out of the trade.
The economic term for this is rent-seeking. Which is sort of the opposite of profit seeking. In profit-seeking people create wealth to trade (or to pay) for other wealth. They work hard to earn more so they can buy more. Both buyer and seller add wealth to the economy. Not so in rent-seeking. In rent-seeking you try to garner more wealth not by working harder but by using the power of government. By getting tariffs placed on foreign competition. By getting prices fixed above market prices. By getting onerous regulations enacted to hurt your competition. By restricting entrance into the industry thus limiting domestic competition. Such as the guilds did for those medieval blacksmiths. This interference into laissez faire free market capitalism reduced economic activity. Because rent-seeking people took more wealth from the market than they brought to it.
The Government caused the Great Depression by Favoring Rent-Seeking over Free Market Capitalism
Some say a better name for rent-seeking is privilege seeking. For that is what they are seeking. Special privilege so they don’t have to compete in the free market. For the cost of a little lobbying can remove the need for innovation. Maintaining the level of quality. Or satisfying customers. For if you have a government-imposed monopoly you don’t have to do any of those things because the people don’t have anywhere else to go.
Rent-seeking is rife in crony capitalism and state capitalism. Neither of which is true capitalism. These companies are granted monopolies (or near monopolies) by the government in exchange for political support. Which they can afford when they can sell their goods above market prices. They get rich. Their cronies in government get rich. But the consumers suffer. As they have to pay higher prices. Suffer poorer quality. And less innovation. Rent-seeking is common in the older industries. Particularly ones with strong unions. Who have negotiated costly wage and benefit packages. Which they can afford to pay until new innovation and new competition enters the market. Putting out a higher quality product at a lower price. Prices so low that an old firm saddled with a costly union wage and benefit package simply can’t sell at and pay their bills. So they go to government. And lobby for privilege.
What typically happens is that they delay the inevitable. All the protected industries in the U.S. have failed. Textile. Steel. Even the automobile (well, two of the Big Three have failed. Ford hasn’t). For when you take more wealth from the market than you bring to it you’re just transferring wealth. You’re not creating it. Which is a problem. Because you have to create wealth to increase economic activity. So when you protect an industry you’re just pulling wealth out of the private economy and transferring it to the rent-seekers. Who give so little in return. Which results in a decline of economic activity. And if it spreads enough it can and has caused recessions. Even a Great Depression. Such as when domestic industries lobbied government to enact the Smoot-Hawley Tariff. Which launched an all-out trade war. All because the government favored rent-seeking over free market capitalism.
Tags: artisan guild, artisans, blacksmith, capitalism, create wealth, economic activity, economy, food, food production, food surpluses, free market, free-market capitalism, guild, incentive, innovation, laissez faire free market capitalism, laissez-faire, limit competition, market, monopolies, monopoly, prices, privilege, privilege seeking, profit seeking, quality, regulations, rent-seeking, tariffs, trade, transferring wealth, union wage and benefit package, wealth, wealth creators
ECONOMIES OF SCALE and vertical integration can do two things very well. Make industrialists rich. And make the things they sell cheap.
The more you make, the less each thing you make costs. Businesses have fixed costs. Big one time investments in plant and equipment. Businesses have to recover these costs. Each thing they sell has a portion of these fixed costs added to its price. The more they sell, the less they need to add to each unit sold. This is economies of scale. Think of bulk goods. Warehouse clubs. Places where you can buy large quantities of things at lower unit prices. You may buy an ‘economy pack’ of 3 bottles of shampoo shrink-wrapped together. The purchase price of a 3-pack will be greater than the price of a single bottle of shampoo at your convenient corner drug store. But the unit cost of each of the bottles in the 3-pack will be less. You save more over time by buying 3 bottles at a time. Spending more, then, means spending less. In time.
Few of us buy raw materials. Few have a need for crude oil. Iron ore. Coal. Limestone. Manganese. But they make the stuff we buy. A lot of things have to happen before those raw materials make it to us in those things we buy. It has to be mined or drilled/pumped. Transported. Processed. Stored. Transported again. Processed again. Stored again. Transported again. There are many different stages between extracting raw materials from the earth and incorporating them into a final product we consumers buy. At every stage there are costs. And inefficiencies. Which add to costs. By reducing these costs along the way, the component materials used at the final manufacturing stage cost less. This reduces the selling price of the final product. This is what vertical integration does. It puts everything from the extraction of raw materials to the incorporation of those processed materials into the final product for sale under control of the final user. It brings in a high level of quality, cost containment and reduction of inefficiencies into the entire process resulting in a high quality, mass produced, inexpensive product.
Not everyone can do these things. You have to live and breathe the industry you’re in. You have to understand it intimately. An industrialist at the top of his game can do this. A politician can’t. States trying to take control of their economy have failed. Every time they’ve tried. Why? Politicians are ‘intellectuals’. They’ve never run a business. They only thought about it. And, somehow, that gives them the moral authority to tamper in something they are simply unqualified to do. And when they meddle, they destroy. Purposely. Or through unintended consequences. In the process, though, they enrich themselves. And their cronies.
ANDREW CARNEGIE WAS a brilliant entrepreneur. After working for a railroad, he saw the future. Railroads. And he would build its rails. And its bridges. With his Keystone Bridge Company. Which used steel and iron. So he built his Union Mills. Which needed pig iron. So he built his Lucy blast furnace. Which consumed raw material (iron, coke, limestone). So he secured his own sources of raw materials.
His Lucy blast furnace set world records, nearly doubling the weekly output of his steel competitors. No one made more steel than Carnegie. For less. In about 20 years, he brought the price down for steel rails from $160/ton to $17/ton. And got rich in the process.
Economies of scale. Vertical integration. And innovation. Carnegie hired the best people he could find and used the latest technology. Always improving. Always cutting costs. Always making steel more plentiful. And cheaper. His steel built a nation. Dominated the industry. And destroyed the competition. Of course, that drew the attention of the government. And they tried to break up the steel giant because it was unfair to the competition. Who couldn’t sell steel as cheap as he could.
JOHN D. ROCKEFELLER was a brilliant entrepreneur. After trying the oil drilling business, he saw the future. The refining business. For America lit the night with kerosene. And he would provide that kerosene. At prices that a poor man could afford. And he did. And he saved the whales in the process (his cheap kerosene put the whale oil business out of business).
Like Carnegie, cutting costs and production efficiencies consumed him. He built his own kilns and used his own timber for fuel. He made his own barrels from his own timber. He used his own horse-drawn carts, boats, rail cars and pipelines. He bought up competitors. He grew to dominate the industry. By far the biggest shipper, he got better shipping rates than his competitors. And he constantly innovated. When others were dumping the gasoline byproduct from refining kerosene into the river (no internal combustion engine yet), he was using it for fuel. He hired the best talent available to find a use for every byproduct from the refining process, giving us everything from industrial lubricants to petroleum jelly (i.e., Vaseline).
His company, Standard Oil, was close to being a monopoly. When they controlled 90% of the market kerosene was never cheaper. He brought the price down from $0.26/gallon to $0.08/gallon. And that was an outrage. We can’t allow any one company to control 90% of the market. Sure, consumers were doing well, but the higher-cost competitors could not stay in business selling at those low prices. So the government broke up Standard Oil via antitrust legislation (the Sherman Act). To protect the country from monopolistic practices. And cheap kerosene, apparently.
BILL GATES WAS a brilliant entrepreneur in building Microsoft. The personal computer (PC) was new. You couldn’t do much with it in the early days unless you were pretty computer savvy. But programs were available that made them great business tools (word processing and spreadsheet programs).
IBM created the PC. And they licensed it so others could make IBM-like machines. IBM clones. The PC industry chewed each other up. But Gates did well. Because all of these machines used his operating system (Microsoft’s Disk Operating System – DOS). Apple developed the Macintosh (with a mouse and Graphical User Interface – GUI) but it was expensive. Anyone who used one in college wanted to buy one. Until they saw the price. So they bought an IBM clone instead. And when Gates came out with Windows, they were just as easy to use as the Macs.
Because of the higher volume of the IBM platform sold, Microsoft flourished. Software was bundled. New machines came preloaded with Windows. And Internet Explorer. And Windows Media Player. You got a lot of bang for the buck going with a Windows-based PC. And Windows dominated the market. Consumers weren’t complaining. Much. Sure, there were things they did bitch about (glitches, drivers, viruses, etc.), but it sure wasn’t price.
Of course, Microsoft’s competitors were hurting. They couldn’t sell their products if Microsoft was giving away a similar product free. Because they were hurting their competitors, the government tried to break up the company with the Sherman Act.
THE NORTHERN SECURITIES SUIT of 1902 found a holding company guilty of not yet committing a crime. Teddy Roosevelt’s administration filed a Sherman antitrust suit against Northern Securities. This was a holding company for Northern Pacific, Great Northern, and Chicago, Burlington, and Quincy Railroads. What’s a holding company? It replaced a trust. Which large corporations created in response to government’s attacks on large corporations.
Small competitors feared large corporations. They could not compete against their economies of scale and vertical integration. The little guys couldn’t sell things as cheap as the big corporations could. So the government intervened to protect the little guy. So they could sell at higher prices.
But businesses grow. All big corporations started out as little guys. And the growing process doesn’t stop. So the big corporations had to find other ways to grow. They formed trusts. Then the trust-busters busted up the trusts. The next form was the holding company.
The trust-busters said that the big corporations, trusts and holding companies were all trying to become monopolies. And once they eliminated all competitors, they would raise their prices and gouge the consumers. Northern Securities never did. But they could. So they were guilty. Because they might commit a crime. One day.
ALL BUSINESS OWNERS aren’t morally ethical and honest. But the market is, albeit cruel. Economies of scales will always put the little guy out of business. Sad, yes, for the little guy. But for every little guy put out of business, millions of consumers save money. They can buy things for less. Which means they have more money to buy more things. New things. Different things. From new little guys who now have a chance with this new surplus of purchasing power.
But when politicians get involved, consumers lose. When they help a competitor, they help them by keeping prices high. To keep competition ‘fair’. For the politically connected.
Consumers never complain about low prices. Only competitors do. Or their employees. Those working on whaling ships didn’t like to see the low price of Rockefeller’s kerosene. But the new refining industry (and its auxiliaries) created far more jobs than were lost on the whaling ships. We call it progress. And with it comes a better life for the many. Even if it is at the expense of the few.
Tags: America, Andrew Carnegie, antitrust legislation, Apple, bang for the buck, Big Government, Bill Gates, bulk goods, Business, Coal, competition, Consumers, cost containment, costs, crude oil, cutting costs, Disk Operating System, DOS, economies of scale, economy, entrepreneur, fixed costs, gasoline, graphical user interface, GUI, holding company, IBM, IBM clones, industrial lubricants, industrialist, industrialists, inefficiencies, innovation, intellectuals, internal combustion engine, Internet Explorer, Iron ore, John D. Rockefeller, kerosene, Keystone Bridge Company, large corporations, Limestone, Lucy blast furnace, Macintosh, Macs, Manganese, manufacturing, materials, Media Player, Microsoft, monopolies, monopoly, moral authority, Northern Securities, Northern Securities Suit ofr 1902, oil drilling, PC, personal computer, petroleum jelly, pig iron, plant and equipment, politician, predatory pricing, progress, railroad, raw materials, refining business, refining process, selling price, Sherman Act, spreadsheet, Standard Oil, steel, steel giant, Teddy Roosevelt, trust, trust-busters, unintended consequences, Union Mills, Vaseline, vertical integration, Warehouse clubs, whale oil business, whales, Windows, Windows-based, word processing
BEFORE THE SS death camps, before the Einsatzgruppen (action groups tasked to mass murder civilians in Poland and the Soviet Union), before the policy of conquest for Lebensraum (living space) for the ‘master race’, before eugenics and selective breeding policies were enacted to produce a ‘master race’, before the Munich Agreement (the Nazi annexation of Czechoslovakia’s Sudetenland), before Kristallnacht (a coordinated Nazi assault on Jewish people and their property in Germany and Austria), before the Nuremberg Laws (anti-Semitic laws), before the Anschluss (the Nazi annexation of Austria), before the Enabling Act gave Hitler full dictatorial powers, before The Reichstag Fire Decree suspended habeas corpus and most of the Weimar Republic’s constitutional civil liberties, before these despotic actions there were free elections. And the National Socialist German Workers’ (Nazi) Party rose to power by the ballot, not by arms.
The Treaty of Versailles treated Germany poorly. It blamed her solely for World War I. And to the victors went the spoils. From Germany. Economically destroyed by the war, the peace was little better. Runaway inflation and rampant unemployment of the Great Depression. Humiliation. People were looking for something. They didn’t know what. But Hitler did.
The National Socialist German Workers’ Party was the party for German workers, not the capitalists. In fact, the Nazis were anti-capitalists. This was good because the people blamed capitalists for the Great Depression. Socialism put people before profits. Nationalism would restore Germany’s pride. There was a lot about the Nazi party to like in 1930s Germany.
The Nazis put people back to work. Building public works and building for war. They printed money to pay for what the confiscated wealth of the ‘undesirables’ didn’t. They ‘enslaved’ workers by prohibiting strikes, labor unions and the voicing of workers’ complaints. Hitler paid them less than they were in the Weimar (i.e., capitalist) days. Then they turned on the business owners. They once supported Hitler because they thought he would remove the grip of labor on business and allow unfettered capitalism. But the state’s grip just replaced labor’s grip.
War followed the war economy. And conscription. And another generation of German dead. The devastation of World War II dwarfed that of World War I. World War I didn’t have carpet bombing. And the Soviets never reached Berlin in World War I. But it had all sounded so good back in the 30s. A nation so eager for government to do something. And government did. But few Germans liked the result. If they could all do it over again they would probably have supported the Weimar Republic, not the National Socialist German Workers’ Party.
THE CONSERVATIVE government of Winston Churchill won the war but the Labour Party won the peace that followed. They, too, blamed capitalism for the Great Depression. It wasn’t going to be business as usual now that the war was over. So they nationalized Big Industry (coal, steel, rail, etc.). There would be no more abject poverty or squalor. They created a nanny state. From the cradle to the grave. And they created the National Health Service. Health care for everyone. Courtesy of the taxpayer.
Of course, to pay for such huge government spending you need taxes. A lot of them. And when you can’t tax anymore, you depreciate your currency (i.e., print money). Like every other nation in the world has ever done when their government spent more than it could afford to spend.
With monopolies came inefficiencies. Shortages. A shortage of coal required scheduled electrical blackouts. Also with monopolies came power. Union power. Whenever they wanted more pay they just had a strike until the bosses caved. It became the way of doing things. The strikes were epidemic and crippling. People outside of Great Britain called them the ‘British Disease’.
Excessive government spending to pay for the national industries, the unions, the nanny state and the National Health Service was turning Great Britain back to the discontent of a Dickens novel. Only instead of the business owners, the oppressors were Big Labor and their unions. The common people were tired of going without and sitting in the dark. Especially when they were paying enormous taxes (the Beatles left Great Britain to escape the confiscatory taxes). Economically, life was becoming more similar to that like in the Soviet Union. The difference was that the Soviet people didn’t know what life under capitalism could be like. The British, of course, did. And they could vote.
And they did. Labour was out. The conservatives were in. Margaret Thatcher took on the unions and privatized industry. These moves were not popular at the time because poorly ran businesses lost government subsidies and failed. Unemployment grew. In the short term. Things did get better in time, though. You see, propping up bad businesses with government subsidies forced consumers to pay more for inferior goods. This was in addition to already paying high taxes to subsidize the businesses in the first place. It just couldn’t go on. And didn’t. They controlled costs. The people kept more of their earnings. They spent and stimulated. The economy grew. As did the living standards of the common Briton.
THE MORAL OF this lesson is to be careful what you wish for. Whenever anyone talks about putting the people first, warning flags should go up. History is full of people who have said this. And just about every one of them was a liar. They want something. Anyone who read Mein Kampf would have known Hitler’s plans. Some did but chose not to believe. They just wanted to believe the lie. They wanted what Hitler was offering. It was just too good to be true. And, as it turned out, it was.
When they nationalized British industry the goal was not to repeat what had happened during the Great Depression. For anyone who had lived through the Great Depression didn’t want to live through another. So there was popular support. But nationalization didn’t improve life for the common Briton. Instead, the life of organized labor got VERY good at the expense of the common Briton. Until it couldn’t be sustained anymore by the common Briton.
So be careful what you wish for. You might just get it. And all the unintended consequences that come along with it.
Tags: Anschluss, anti-capitalists, British Disease, Einsatzgruppen, Enabling Act, eugenics, excessive government spending, Great Depression, Kristallnacht, Lebensraum, Margaret Thatcher, master race, monopolies, Munich Agreement, nanny state, National Health Service, National Socialist German Workers, nationalized industry, Nazi, Nuremberg Laws, privatize industry, Reichstag Fire, socialism, SS death camps, the Beatles, Treaty of Versailles, Weimar Republic