The tendency to replace the formal individuated equality of the market, universal rights and democracy with rule by society’s various big interest groups

A pretty succinct description of the creeping crony capitalism/corporatism we have seen over the past few years. From Obama’s Corporatist Constitution by Mickey Kaus.

We got business, we got labor, we got evangelicals. You expect me to get Congress too? Like many others, I’ve been on the lookout for examples of corporatism — the tendency to replace the formal individuated equality of the market, universal rights and democracy with rule by society’s various big interest groups, exercising special privileges by virtue of their particular social role and cutting deals with each other (usually to protect themselves).** Some examples of corporatism: Special privileges for reporters (they’re “society’s eyes and ears”!) or big banks (they’re “too big to fail”). Corporatism’s acutely fascinating because it’s insidious, anti-democratic, sclerotic and perhaps inevitable. (If a bank is too big to let fail, as arguably several are, then that bank will almost by definition be specially shielded from the Darwinian struggle the market. Those special privileges may come with special responsibilities, but that makes them more corporatist, not less.)

Corporatism’s easy — you just get the leaders of society’s various bodily organs in a room and work the sucker out. It’s especially easier to impose regulations on a few big players, who can foot the bill or pass it on, than on a near-infinite number of small players. That’s one reason modern liberals tend to accept corporatism when they should know better.

Tactically, and for short term objectives, it is always easier to use the coercive force of government to reach acquiescence on some issue. Even better to hide the decision-making process from citizens completely. Strategically, in terms of long term effectiveness and success, you always have to go for the slow evolution and coalescence of public opinion. If you force too many things through, sometimes it simply collapses from cumulative failures (see The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities by Mancur Olson). Waiting for societal agreement takes longer but is more adaptive and resilient.

The totalitarians/corporatists are always eager to capture the reins to force through what is in their narrow interests rather than accept the 14th Amendment and acknowledge the equal participation of every individual. A culture and system of government founded on individuals, freedom and liberty is always a threat to the established interests of the corporatists.