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Here's what has happened with my business since 2008. A major bank that solicited us to apply for a credit line, cut it back by 75% less than six months after they approved it. Interest on the small amount we used was hiked. Fees were hiked and became very inflexible, despite the fact that we run hundreds of thousands of dollars through this bank and have a good credit rating. Business insurance, which used to be an incidental expense, went up twenty percent, after going up about 100% between 2005-2007. Our health insurance, which has steadily risen each year, along with providing bigger co-pays and less benefits, rose 25% in 2 years. Their explanation? People are dropping coverage because of the recession so they are raising rates on the remaining customers.Every product or service that we purchase from a big corporation has gone up, despite being in a recession, which should be deflationary.
The only thing that has gone down is business revenue - 30%.
I regard this exactly as it is - taxation on small business by corporations of the FIRE economy (Finance-Insurance-RealEstate). Most of these corporate expropriations happened under the reign of that most pro-business anti-regulation administration of GW Bush. IMHO to the extent that government is responsible for the crash/corporate coup, it is by doing the bidding of Banks, Insurance, Real Estate corporations, and by encouraging people to go into debt to replace wages that are being stepped on by anti-worker policies of all types.
I have always thought that there was a big difference between Free Enterprise and Capitalism. Free enterprise means the right to start a new business venture if you can do it. Capitalism means Rule by Big Capital. Those who control huge chunks of Capital (obtained by manipulating and subverting constitutional government) Rule with an Iron Fist. We should have governments that help Free Enterprise and restrict Rule by Capital
We are coming out of a collapsed credit bubble. Caused by easy credit to everyone across all asset classes. Is the solution giving more credit? No. The bank, actually did the right thing. Of course, they did it on their concerns not yours. They need all that money stored with the FED to pay off the collapse in CRE this year; and next.
Insurance and medical is run by cartels which is backed by government. It's fascism. So are many of the other big industries.
GWB is but a drop in the bucket of something that has been gaining ground in this country since it's inception. As well as other countries.
"Free enterprise means the right to start a new business venture if you can do it. Capitalism means Rule by Big Capital. " That is not the definitions. Regardless. None of us have ever lived in a Free Market system. It's impossible in a fiat based economy. Until people can use money of their own choosing, you cannot have a Free Market.