Here are my speculations about what would happen during the next decades in the dynamics between governments and corporations.
My proposition is that governments and big corporations will partly merge into a single entity - The Establishment. This process of merging of government and big business has already begun during the 80s. So first I will briefly explain what has happened in the past - as explained in Step 1 and Step 2, and then what might happen in the future - that potential change in the macro-dynamics that will lead to merging and the creation of an all-encompassing establishment.
Breif summary in bullets:
Step 1: Unification and out-sourcing of power
The European Union is the model of future super-states: The national government is outsourced to the super-state. The borders that controlled the movement of people, goods, and capital are erased and a single currency is introduced. An important institution called the Central Bank is effectively abolished and its mandates are given to the new Central Bank of the union.
This is the model of the future. Small entities are united into bigger entities and the power of their institutions is given to unelected institutions with little to no accountability to the people.
Step 2: Liberaliztion, Privatization and Monopolizaton.
In addition to the unification and elimination of borders, another process was started in the 80's: the privatization of government services such as the supply of water, electricity, infrastructure, schooling, health, etc... The initial intention was good – to spur competition that was supposed to drive the prices down. But most of these services were purchased by international corporations that were able to monopolize the markets thus keeping the prices high. The result of privatization was monopolization which benefited big corporations. The result was that each market was dominated by one or a handful of big firms.
That was the history and now the future...
The Role of Central Bank and New Monetary Policy
Most developed economies in the world reached the zero bound of interest rates. There are various reasons for that, that we will not discuss, but the main implication is that the central banks are “out of ammo” to further stimulate the economy. What is left is fiscal policy – government purchasing of goods and services. Where would the government buy goods and services? At the markets from the big monopolistic corporations that are helped to grow.
Where would the government take money to finance its own expanses? The problem is that most countries have institutional arrangements that prevent the government from financing their own debt since it causes inflation. But this arrangement will be eliminated and there are many reasons to eliminate this arrangment: the quantitative easing (QE) program injected trillions of dollars into the US economy and inflation did not rise, the proponents of Modern Monetary Theory (MMT) and other unorthodox economists and politicians (Berne Sanders) are advocating that for decades and most importantly the big corporation would want it to happen. So it is not a matter of left and right it is a matter of might – the restriction will be eliminated since it is the only way to stimulate the economy.
What would be the effect? Watch closely!
An implementation of a policy such as MMT might have huge consequences for the economy. Mind the close relationship between the government, central bank, and the corporation. The government is unable to supply goods and services (since they were privatized in step 2) but it can decide on measures that are needed to bust the economy – medical care for all, more money to single mothers, more money for useless college degrees etc… Then the central bank prints the money that the government needs to finance these measures. The government gets the money and hands them to corporations that sell you the goods and services.
If the government’s debt becomes unsustainable then the government simply sells (to the corporations) what it still owns such as prisons, hospitals, roads, and in the future the police, courts and the parliament. As a result, the government is reduced to a printing press and a mediator of the corporative interest of corporations.
As the government shrinks the corporations are growing bigger as more and more services and goods (even the most basic) become commodified and privatized. Oh… yes, and your money is devaluated and you have to wage-slave even more to afford the most basic stuff. In addition, another important aspect of MMT is Job Guarantee – if you are unemployed you will be given a job at a government-sponsored corporation to wageslave for. The policing of the plebs (us) will remain important and will be done by Social Credit System, Militarized Police, Surveillance, and maybe some great shit will make normies to implant RFID chips (but it already happened with the Smartphones).
The Future World
The state will become a place where corporations meet and settle their disputes on how to exploit the people more effectively and “keep the system going”. For the people, it means hyper-exploitation longer shifts, less investment into public goods, etc... and above all borrowing and sell-off of the future - your future.
The result is a system that reached “communism” by capitalism. It supplies each with his needs to keep him wageslaving in order to harvest what he as created throw taxes and high costs for subsistence. You will be left with zero savings since with the Social Credit System (we already discussed it) the prices of goods will be differentiated for different people in accordance to their social score. Further down the road, the system can support specific complexes by creating corporation-specific money that can used to buy goods of only a specific corporation. Thus, rationing demands for corporations.
So… what do you think boyos?
My proposition is that governments and big corporations will partly merge into a single entity - The Establishment. This process of merging of government and big business has already begun during the 80s. So first I will briefly explain what has happened in the past - as explained in Step 1 and Step 2, and then what might happen in the future - that potential change in the macro-dynamics that will lead to merging and the creation of an all-encompassing establishment.
Breif summary in bullets:
- Governments will decrease in size but increase in power, and a part of government functions will be given to corporations that will increase both in size and in power.
- The increase in the power of governments and corporations will come at the expense of the peoples' power.
- Central Banks will be the key players in the merging of governments and big business.
- International Organizations (IMF, BIS, UN, etc.) will erase the borders of nation-states for big corporations and pave the way for even more globalization and subsequent abolishment of states.
Step 1: Unification and out-sourcing of power
The European Union is the model of future super-states: The national government is outsourced to the super-state. The borders that controlled the movement of people, goods, and capital are erased and a single currency is introduced. An important institution called the Central Bank is effectively abolished and its mandates are given to the new Central Bank of the union.
This is the model of the future. Small entities are united into bigger entities and the power of their institutions is given to unelected institutions with little to no accountability to the people.
Step 2: Liberaliztion, Privatization and Monopolizaton.
In addition to the unification and elimination of borders, another process was started in the 80's: the privatization of government services such as the supply of water, electricity, infrastructure, schooling, health, etc... The initial intention was good – to spur competition that was supposed to drive the prices down. But most of these services were purchased by international corporations that were able to monopolize the markets thus keeping the prices high. The result of privatization was monopolization which benefited big corporations. The result was that each market was dominated by one or a handful of big firms.
That was the history and now the future...
The Role of Central Bank and New Monetary Policy
Most developed economies in the world reached the zero bound of interest rates. There are various reasons for that, that we will not discuss, but the main implication is that the central banks are “out of ammo” to further stimulate the economy. What is left is fiscal policy – government purchasing of goods and services. Where would the government buy goods and services? At the markets from the big monopolistic corporations that are helped to grow.
Where would the government take money to finance its own expanses? The problem is that most countries have institutional arrangements that prevent the government from financing their own debt since it causes inflation. But this arrangement will be eliminated and there are many reasons to eliminate this arrangment: the quantitative easing (QE) program injected trillions of dollars into the US economy and inflation did not rise, the proponents of Modern Monetary Theory (MMT) and other unorthodox economists and politicians (Berne Sanders) are advocating that for decades and most importantly the big corporation would want it to happen. So it is not a matter of left and right it is a matter of might – the restriction will be eliminated since it is the only way to stimulate the economy.
What would be the effect? Watch closely!
An implementation of a policy such as MMT might have huge consequences for the economy. Mind the close relationship between the government, central bank, and the corporation. The government is unable to supply goods and services (since they were privatized in step 2) but it can decide on measures that are needed to bust the economy – medical care for all, more money to single mothers, more money for useless college degrees etc… Then the central bank prints the money that the government needs to finance these measures. The government gets the money and hands them to corporations that sell you the goods and services.
If the government’s debt becomes unsustainable then the government simply sells (to the corporations) what it still owns such as prisons, hospitals, roads, and in the future the police, courts and the parliament. As a result, the government is reduced to a printing press and a mediator of the corporative interest of corporations.
As the government shrinks the corporations are growing bigger as more and more services and goods (even the most basic) become commodified and privatized. Oh… yes, and your money is devaluated and you have to wage-slave even more to afford the most basic stuff. In addition, another important aspect of MMT is Job Guarantee – if you are unemployed you will be given a job at a government-sponsored corporation to wageslave for. The policing of the plebs (us) will remain important and will be done by Social Credit System, Militarized Police, Surveillance, and maybe some great shit will make normies to implant RFID chips (but it already happened with the Smartphones).
The Future World
The state will become a place where corporations meet and settle their disputes on how to exploit the people more effectively and “keep the system going”. For the people, it means hyper-exploitation longer shifts, less investment into public goods, etc... and above all borrowing and sell-off of the future - your future.
The result is a system that reached “communism” by capitalism. It supplies each with his needs to keep him wageslaving in order to harvest what he as created throw taxes and high costs for subsistence. You will be left with zero savings since with the Social Credit System (we already discussed it) the prices of goods will be differentiated for different people in accordance to their social score. Further down the road, the system can support specific complexes by creating corporation-specific money that can used to buy goods of only a specific corporation. Thus, rationing demands for corporations.
So… what do you think boyos?
