In the previous two posts I sought to lay out the Biblical case against corporate cartels and argued in favor of an extremely limited form of civil government that does not intrude into the free market in any fashion. We saw that the Regulative Principle of Government is perhaps the most important principle of historic civics that can be used by citizens to put the brakes on increasing Fascism. This principle states that the civil government “has no authority if not from God” (Rom. 13:1 literal Greek). For the civil government to do anything, it must justify its authority for those actions by pointing to an explicit authorization that God has given within the pages of the Bible.
Obviously American civics operates on a quite different principle all the way down to the county level. The assumption seems to be that there are no limits to what a civic officer can do unless a higher civic officer tells him to stop. Since it is (wrongly) believed that the Federal government is the highest power, many politicians act as if there are no limits to what the Federal government can do. When citizens or corporations petition them to fix perceived problems, the politicians get to work in making new regulations (they are after all the de facto messiah, and so they must fix problems). When it becomes quickly apparent that politicians cannot effectively oversee all the regulations that they write, they establish agencies, boards, and committees to recommend regulations and to oversee their enforcement. But this concentration of power attracts special interests who want to make sure that regulations benefit them rather than hurt them. Later they learn that being friends with politicians can bring regulations that favor currently established corporations and make it difficult for others to break into the market. Once “success stories” (such as those achieved by the American Medical Association, the American Bar Association, the railroads, etc.) became known, more corporations were incentivized to snuggle up to statist politicians and try to finesse new regulations in their favor. When a corporation says, “Our industry needs regulation,” realize that shenanigans are in the works. Corporate relations with fascism are as old as fascism. Indeed, corporations have found that this relationship with the agencies is so advantageous, that whenever competition is too fierce, the unscrupulous corporations ask the politicians to regulate their industry in order to fix new problems that have been discovered. Congress obliges, and sends the agencies new powers to regulate. But over time it is discovered that the most effective lobbyists are the ones who can promise the most benefits (legal bribes) to the politicians and the politicians find the idea of patronage to be of huge benefit to their own power base. So agencies “discover” that they need more experts to advise them on the best regulations, and who is a better expert than a former vice president of a corporation that has made massive contributions to the politicians? Once these former corporate heads get onto agencies and commissions, it becomes easier for their allies to get on board. And round and round it goes on the iron triangle – see graphic. Because of this symbiotic relationship between lobbying corporations, congressional committees, and the regulatory commissions/agencies, both fascism and corruption are guaranteed to increase.
But what can be done? The irrational answer many Christians give is that we must pressure the Federal Government to control the corporations even more strictly. But seeking statist regulation for an industry in order to solve problems in that industry is asking an already fascist government to become more fascist in order to cure the problems of fascism. Even if the most egregious and corrupt aspects of the iron triangle could be fixed, it would still be a statist solution to the problems of statism. Government regulation is the problem that attracted lobbyists in the first place. Many people don’t realize that corporate cartels have gained their power by asking the civil government to regulate their industry. They are bed-fellows who mutually enrich each other’s positions. Corruption is merely the symptom – the idol is a fascist sort of statism. Keep in mind that operation of the means of production and regulation of the means of production was the key distinction between communism and fascism. Whereas communism sought to own and operate the means of production, fascism sought total control indirectly by regulating every aspect of manufacturing, commerce, finance, and agriculture. We are a fascist state and Christians unfortunately continue to promote more fascism.
What should we do? We will handle this question in the next post:
(to be continued)
 Though not the most egregious things that have taken place in the iron triangle, the following issues are often cited as needing to be fixed.
- Most recognize that oversight committees often do not have the expertise to oversee everything, so they hire advisory committees of experts from the very industry being regulated. Could this be curtailed?
- Most recognize that there has been a movement of people from the industry being regulated to chairing a committee/agency to going back into the industry. This is clearly a conflict of interest? Could this be curtailed?
- Some have pointed to the problem of the interchange program that exists – where corporations will lend personnel to the government (and often pay them while they hold the government job). They believe this could be reformed.
- Most recognize that former members of the House and Senate are often hired by the industry to act as lobbyists. (Was this arranged for while they were still voting members of the House and Senate? The cynics believe it must have been.)
- Massive amounts of money have been spent by corporations to influence grassroots lobbying. Even organizations like the AARP spend tens of millions of dollars to promote certain candidates, and then lobby those candidates to make laws in their favor.
- When reformers try to bring reform, corporations will often use court action to delay government action until it is too late.
- And when one door is closed, corporations have the money to go through another door. As long as civil government has regulative agencies, there will be big money seeking to control it.
 In classical communism, most industries were nationalized and the civil government managed them. In fascism, the industries were not owned by the civil government but were highly regulated by it. In our country we have a combination of both approaches. National parks are own by the state and so are managed, not regulated. In contrast, food, law, medicine, the automobile industry, and most other industries are regulated. Broadcasting is a combination of both. The “airwaves” where nationalized in 1927, and the civil government has leased frequencies to private broadcasters and regulated the use of their stations. So the “broadcasting” industry is both managed and regulated. But fascist regulation is the name of the game in this country. And it is not simply regulation of business. Civic regulation extends to the moral behavior and day-to-day living of the average citizen. Rather than following the Biblical model of citizens asking the government to enforce a contract (after a fair trial) or to punish a murderer or other criminal (after a fair trial), the civil government has sought to prevent criminal behavior by regulating guns, tobacco, education, investments, insurance, licensing, cash withdrawals from one’s own bank account, speech, etc.