The New Corporatism
2nd December 2020
ZMan looks behind the curtain.
For most of Europe, this has been the explicit arrangement. In Scandinavia, what is often called socialism is actually corporatism. Workers get generous benefits, but the state protects business from competition. In other parts of Europe it is not as explicit, but the social contract is based on the cooperation of the government, business and labor unions. The irony is that this was the approach favored by fascist movements, but no one dares mention that bit of history.
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The new system is an informal arrangement between Silicon Valley, Wall Street and the political class in Washington. Left out of this is not only labor, but the bulk of business, which does not operate globally. You see this with Covid. Exceptions were made for the giant corporations, but the small and midsized business forced to knuckle under to draconian measures. A great transfer of power and money is underway from the middle-class to the elites.