Wallerstein is one of the few who clearly understands the State’s role as enabler and
enforcer of monopolies and cartels. High profit margins are most easily maintained
by persuading politicians to create/regulate quasi-monopolies and cartels.
The State has two core mandates: enforce quasi-monopolies and cartels
for private capital, and satisfy enough of the citizenry’s demands for
more benefits to maintain social stability.
If the State fails to maintain monopolistic cartels, profit margins plummet and
capital is unable to maintain its spending on investment and labor. Simply put,
the economy tanks as profits, investment and growth all stagnate.
If the State fails to satisfy enough of the citizenry’s demands, it risks social instability.
Which is a primary explanation for our current plight, in which the power of the state is nakedly for sale to the highest bidder as a means of crushing competition, while whatever is left over (borrowed, actually) is applied to pacifying the masses in two ways: bribes, and growing police powers in the emerging authoritarian police state.
Read the whole thing. This is just a taste.
Check out my new bestseller, Lightning Fall: A Novel of Disaster. Glenn Reynolds at Instapundit.com says: “Bill Quick has authored a terrific thriller that is also an all too plausible warning. Highly recommended!” Available in Kindle e-book or trade paperback formats.