

It’s little more than a scary story they tell to convince people to go along with their authoritarian ideas
This is where I think you may have misinterpreted me. I’m not trying to push socialism. I think we’re genuinely fucked and there is no way out.
Sure, but that overlap should be as small as possible while still ensuring a competitive market
This is a fantasy. We talk about “free market capitalism” as if it’s some pristine, untouched mechanism that would work perfectly fine if only the government followed the rules. But the moment big money arises, the entire political field is lured in. Wealth itself becomes a gravitational force that pulls legislators, laws, and lobbyists into its orbit.
This is not a bug, it’s a feature. It’s fundamental to the system. A free market can never remain a free market. For two very simple reasons.
a) economies of scale. It’s cheaper to a lot of something per thing compared to a little of something per thing. so there is a financial incentive to get bigger and that is a self-perpetuating cycle. Eventually at the end of the game of Monopoly, there’s only one landlord standing who bought everything else up.
b) wealth is power. if you have power, you will use it to ensure your position is improved. this is human nature. this works the same in any other political economic system.
It’s not that a pure free market is corrupted by government, or that a pure socialism is corrupted by incompetent central planners; both are myths in the sense that they never truly exist in the real world. We either get forms of crony capitalism or state-managed capitalism, but the “free” part is always an abstraction.
What we need to acknowledge is that the political and economic systems are not two separate worlds that only overlap by accident. They’re conjoined twins. Pretending one can neatly excise government from the economy is a fantasy—just as fantastical as imagining the perfect socialist utopia.
The trick is to recognize that the moment large-scale wealth accumulates, it necessarily accumulates political clout. And from there, the “free market” gradually becomes a marketplace that’s anything but free.
This is what people mean by late stage capitalism. It’s capitalism that has eroded all of the public institutions and in a short amount of time fascism will take root. We’re witnessing the transition right now as we speak.
I’m a bit of a pessimist here. I think free market capitalism is a terrible system that will inevitably crash and fail. It is also the best thing we have come up with so far. Essentially Churchill’s quote. I only hope that after our next foray into fascism we will come out the other side with a new 21st century ideology that is somehow able to fix the fundamental contradictions.
I really support Liberalism (and I mean you know, freedom of speech, free market, pursuit of happiness, etc). I would always prefer to live in a society that gives me the freedom to live life on my terms. In theory, we could have a socialist version of this, but I think like we discussed it falls victim to precisely the same fate. When the Soviets initially took power, they were genuine in their desire for revolutionary emancipation. They did many great things- they created written languages for all of the local ethnicities that didn’t have them. They put local leaders in positions of power. They increased literacy and invested in education strictly for altruism.
That only lasted a couple short decades, however, because the wheels of power inevitably turn. I shouldn’t have to go into detail on the horrific abuses of power that resulted from the developed Soviet state
Here’s the thing, I think you make great points. And the solutions you propose would benefit the system both in the short and long term. But I think collapse is inevitable anyway, and specifically collapse into fascism. Perhaps in a system where the institutions are strong and we have policies in the line of what you’re suggesting (campaign finance reform, proportional representation, etc. I’d even say higher salaries for politicians counter intuitively) the descent will be slowed for a long period of time.
But ultimately, it’s the classic criminal versus police officer. You can put up a border wall to stop drugs coming in, they’ll go under the ground. You put ground penetrating radar sensors, they build DIY-submarines. You invest in a coast guard, they build drones. Etc Etc
It’s a constant battle that requires constant vigilance. However, here’s the kicker. Here’s the reason why it will always inevitably fail.
The people with significant wealth and by extension power- they will always have incentive to change the system to their advance and they will always have the ability to influence it. They will never stop trying to come up with new ways to either exploit current laws or create new ones.
The average people, the consumers and voters, they will sometimes have the incentive to change the system and they will sometimes have the ability to influence it. In times of trouble, people get upset and they start protesting. They start voting for new measures, different policies get enacted. Like you mentioned, we broke up Standard Oil. Or when we broke up the Bell Telephone Company.
During that time people were both discontent, which means they had the incentive to change the system and coincidentally that also gives them the ability to influence the system- politicians are only scared into making positive change for the average person when there is large scale dissent.
But what happened to both of those examples (and virtually every other anti-trust regulation we’ve ever tried to implement)?
Today, Bell Telephone’s descendant is AT&T- a behemoth of a megacorp that participates in an oligopoly over the telecommunications market. Today, Standard Oil’s descendant is Exxon Mobil and remains the largest oil and gas company in the US.
What happened here? Well, the public interest eventually fades. Some other crisis shows up on the news channels and people become content with their lives. If the economy is doing well, people are paying their bills, etc, they don’t care. If they economy isn’t, the politicians have become exceedingly proficient at redirecting that discontent towards scapegoats (today it’s immigrants for example).
So, it’s a simple math equation. Let’s say the corporations win 51% of the coin flips and the free market / law abiding public wins 49% of the time. For a very long time, it can stay more or less even. Cops versus robbers- the equilibrium stays intact.
But imagine a limit that goes to infinity. What happens? Eventually the interest of wealth wins. Now, different societies can have different coin flip ratios.
I think our society is nowhere near 51% / 49%. I think your solutions would bring us closer to that 50 / 50 but due to again, the very nature of the capitalist system- the law will never be in the driving seat.
Two very simple axioms determine that, which we have discussed above
wealth tends to accumulate due to economies of scale
wealth leads to power and power self-perpetuates