This is in addition to an article titled “How the left was won”
We are presented with visions of big government beating down big business and helping the small businessman and laborer. Government tells us that it will protect us by putting reins on Wall Street, requiring expensive drug testing, and regulating hedge funds. Why then did Barack Obama and the Democratic Party reel in $89 million from Wall Street, over $14 million from big pharma companies, and the support of legendary hedge fund manager, George Soros, during the Presidential campaign in 2008?
What most of us misunderstand is that the regulation that is imposed by big government typically helps big business and hurts small business. It does so by eliminating the possibility of competition for big companies. For example, on the surface it would seem that Pfizer, a large pharmaceutical company, would be opposed to the uber-expensive drug testing that is required of the FDA. After all, this will cost them a great deal when developing new drugs and will harm their bottom line. However, that is only partially correct. By having extremely expensive and time-consuming testing measures be required by the government, Pfizer is able to escape any pesky competition that may come from startup drug companies. That is, a small drug company will not have the capital available to invest millions of dollars and years of time testing a new drug it hopes to sell. However, Pfizer will have such resources, so it can eliminate the threat of competition and its drugs (along with those of a handful of other large pharmas) will be the only new drugs to hit the market in the future. Likewise, big Wall Street firms and George Soros benefit from financial regulation because such regulation makes it very difficult for new, innovative firms to afford the costs of such regulation. As such, the established Wall Street firms and hedge funds do not need to be worried about future competition from new market entrants. An additional (and more apparent) bonus for Wall Street and Mr. Soros has been the amount of government (read: taxpayer) money that is used to buy worthless assets and prop up failed financial institutions. Such government investments directly improve the investments of Wall Street firms and Mr. Soros.
By big government I do not necessarily mean democrats – I am referring to all big government. It is simply the case that democrats promote even bigger government than republicans (remarkably). The only way to truly keep big business honest and force them to compete fairly with the rest of the market is to sustain a truly free market. Regulation, taxation, and subsidization will only serve to grow big business and make growth more difficult for small businesses that will innovate and provide more competition.