Jeffrey A. Tucker, writing at Brownstone.org, a go-to site for a critique of the modern tyrannical state, has addressed the issue of the transformation of Western capitalism into corporatism, which is the classic definition of fascism, the emergence of government and the corporates. The government has become one of the largest purchases of the products of Big Tech, and Big Tech collects billions of profits from its deals with the government. Just for the US, Amazon through hosting the data of the National Security Agency gets $ 10 billion, even though one would question why a private corporation should be hosting such data in the first place.Microsoft, Amazon, Google, and Oracle, share in the Joint Warfighter Cloud Capacity project, which will give the Department of Defense cloud services, for a tune of $ 9 billion. Again, one should be wondering about the security of this, and how many communist Chinese spies are already working in the area? Under corporate fascism, these questions do not get asked. The same situation exists with the government and Big Pharma, as seen in the Covid plandemic. The boundaries between the government and the corporates begins to disappear, with Big Pharma dispensing social and health policies from the back room.
As Tucker points out, the emergence of corporate fascism as far as Big Tech goes will have a deleterious impact upon freedom: "It has become a main curator and censor of our news and social media presence and postings. It is in a position to say which companies and products succeed and which ones fail. It can kill apps in a flash if the well-placed person does not like what it is doing. It can order other apps to add or subtract to a blacklist based on political opinions. It can tell even the smallest company to comply or face death by lawfare. It can seize on any individual and make him a public enemy based entirely on an opinion or action that runs contrary to regime priorities.
In short, this corporatism – in all its iterations including the regulatory state and the patent war chest that maintains and enforces monopoly – is the core source of all the current despotism.
It obtained its first full trial run with the lockdowns of 2020, when tech companies and media joined in the ear-splitting propaganda campaigns to shelter in place, cancel holidays, and not visit grandma in the hospital and nursing home. It cheered as millions of small businesses were destroyed and big-box stores thrived as distributors of approved products, while vast swaths of the workforce were called nonessential and put on welfare."
Combatting this new giant of tyranny will be the main fight ahead for Freedomers, and the battle is thus much bigger than the one faced by past generations.
https://brownstone.org/articles/how-did-american-capitalism-mutate-into-american-corporatism/
"In the 1990s and for years into our century, it was common to ridicule the government for being technologically backwards. We were all gaining access to fabulous things, including webs, apps, search tools, and social media. But governments at all levels were stuck in the past using IBM mainframes and large floppy disks. We had a great time poking fun at them.
I recall the days of thinking government would never catch up to the glories and might of the market itself. I wrote several books on it, full of techno-optimism.
The new tech sector had a libertarian ethos about it. They didn't care about the government and its bureaucrats. They didn't have lobbyists in Washington. They were the new technologies of freedom and didn't care much about the old analogue world of command and control. They would usher in a new age of people power.
Here we sit a quarter-century later with documented evidence that the opposite happened. The private sector collects the data that the government buys and uses as a tool of control. What is shared and how many people see it is a matter of algorithms agreed upon by a combination of government agencies, university centers, various nonprofits, and the companies themselves. The whole thing has become an oppressive blob.
Every major company that once stayed far away from Washington now owns a similar giant palace in or around D.C., and they collect tens of billions in government revenue. Government has now become a major customer, if not the main customer, of the services provided by the large social media and tech companies. They are advertisers but also massive purchasers of the main product too.
Amazon, Microsoft, and Google are the biggest winners of government contracts, according to a report from Tussel. Amazon hosts the data of the National Security Agency with a $10 billion contract, and gets hundreds of millions from other governments. We do not know how much Google has received from the US government, but it is surely a substantial share of the $694 billion the federal government hands out in contracts.
Microsoft also has a large share of government contracts. In 2023, the US Department of Defense awarded the Joint Warfighter Cloud Capability contract to Microsoft, Amazon, Google, and Oracle. The contract is worth up to $9 billion and provides the Department of Defense with cloud services. It's just the beginning. The Pentagon is looking for a successor plan that will be bigger.
Actually, we don't even know the full extent of this but it is gargantuan. Yes, these companies provide the regular consumer services but a main and even decisive customer is government itself. As a result, the old laughing stock line about backwards tech at government agencies is no more. Today government is a main purchaser of tech services and is a top driver of the AI boom too.
It's one of the best-kept secrets in American public life, hardly talked about at all by mainstream media. Most people still think of tech companies as free-enterprise rebels. It's not true.
The same situation of course exists for pharmaceutical companies. This relationship dates even further back in time and is even tighter to the point that there is no real distinction between the interests of the FDA/CDC and large pharmaceutical companies. They are one and the same.
In this framework, we might also tag the agricultural sector, which is dominated by cartels that have driven out family farms. It's a government plan and massive subsidies that determine what is produced and in what quantity. It's not because of consumers that your Coke is filled with a scary product called "high fructose corn syrup," why your candy bar and Danish have the same, and why there is corn in your gas tank. This is entirely the product of government agencies and budgets.
In free enterprise, the old rule is that the customer is always right. That's a wonderful system sometimes called consumer sovereignty. Its advent in history, dating perhaps from the 16th century, represented a tremendous advance over the old guild system of feudalism and certainly a major step over ancient despotisms. It's been the rallying cry of market-based economics ever since.
What happens, however, when government itself becomes a main and even dominant customer? The ethos of private enterprise is thereby changed. No longer primarily interested in serving the general public, enterprise turns its attention to serving its powerful masters in the halls of the state, gradually weaving close relationships and forming a ruling class that becomes a conspiracy against the public.
This used to go by the name "crony capitalism" which perhaps describes some of the problems on a small scale. This is another level of reality that needs an entirely different name. That name is corporatism, a coinage from the 1930s and a synonym for fascism back before that became a curse word due to wartime alliances. Corporatism is a specific thing, not capitalism and not socialism but a system of private property ownership with cartelized industry that primarily serves the state.
The old binaries of the public and private sector – widely assumed by every main ideological system –have become so blurred that they no longer make much sense. And yet we are ideologically and philosophically unprepared to deal with this new world with anything like intellectual insight. Not only that, it can be extremely difficult even to tell the good guys from the bad guys in the news stream. We hardly know anymore for whom to cheer or boo in the great struggles of our time.
That's how mixed up everything has become. We've clearly traveled a long way from the 1990s!
Some might observe that this has been a problem far back in time. Starting with the Spanish-American War, we've seen a merger of public and private as involving the munitions industry.
This is true. Many Gilded Age fortunes were wholly legitimate and market-based enterprises but others were gathered from the nascent military-industrial complex that began to mature in the Great War and involved a vast range of industries from industry to transportation to communications.
Of course in 1913, we saw the advent of a particularly egregious public-private partnership with the Federal Reserve, in which private banks merged into a unified front and agreed to service US government debt obligations in exchange for bailout guarantees. This monetary corporatism continues to vex us to this day, as does the military industrial complex.
How is it different from the past? It's different in degree and reach. The corporatist machine now manages the main products and services in our civilian life including the entire way we get information, how we work, how we bank, how we contact friends, and how we buy. It is the manager of the whole of our lives in every respect, and has become the driving force of product innovation and design. It has become a tool for surveillance in the most intimate aspects of our lives, including financial information and inclusive of listening devices we've willingly installed in our own homes.
In other words, this is no longer just about private companies providing the bullets and bombs for both sides in a foreign war and obtaining the rebuilding contracts after. The military-industrial complex has come home, expanded to everything, and invaded every aspect of our lives.
It has become a main curator and censor of our news and social media presence and postings. It is in a position to say which companies and products succeed and which ones fail. It can kill apps in a flash if the well-placed person does not like what it is doing. It can order other apps to add or subtract to a blacklist based on political opinions. It can tell even the smallest company to comply or face death by lawfare. It can seize on any individual and make him a public enemy based entirely on an opinion or action that runs contrary to regime priorities.
In short, this corporatism – in all its iterations including the regulatory state and the patent war chest that maintains and enforces monopoly – is the core source of all the current despotism.
It obtained its first full trial run with the lockdowns of 2020, when tech companies and media joined in the ear-splitting propaganda campaigns to shelter in place, cancel holidays, and not visit grandma in the hospital and nursing home. It cheered as millions of small businesses were destroyed and big-box stores thrived as distributors of approved products, while vast swaths of the workforce were called nonessential and put on welfare.
This was the corporatist state at work, with a large corporate sector wholly acquiescent to regime priority and a government fully dedicated to rewarding its industrial partners in every sector that went along with the political priority at the moment. The trigger for the construction of the vast machinery that rules our lives was far back in time and always begins the same way: with a seemingly inauspicious government contract. "