Government IS a Big Business

What if I told you that government IS a big business?

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Millennials tend to be particularly skeptical of big business, yet the same millennials trust the government to make crucial decisions in their lives. I don’t get it.

The same greedy people who run big business are also deeply involved and connected with government. Government officials, in my opinion, are even greedier than business owners. A business gets created because one individual has an idea that will enhance other people’s lives. A government passes new legislation depending on how much one group can bribe them. Government is a big business

For example, isn’t it peculiar how many banks actually lobbied for the Dodd Frank laws? But why would a big business lobby against its industry? The answer is quite
obvious, big businesses are more apt to handle big federal regulations – which require more money – than smaller businesses are. Regulations give big businesses a competitive edge.

Wal-Mart also engaged in similar tactics over the years, but with minimum wage increases. Now before you read that link, it’s important to realize there is not some humanitarian belief driving Wal-Mart’s support of an increase in the federal minimum wage. From the article:

 In the mid-2000s, Wal-Mart backed an increase in the federal minimum wage that eventually took effect in 2007. Asked whether Wal-Mart would support another raise in the federal minimum wage, Tovar said: “That’s something we’re looking at. Whenever there’s debates, it’s not like we look once and make a decision. We look a few times from other angles.”

However, also from the article, Wal-Mart opposed a 2013 bill that would have severely impacted them instead of their competition:

Wal-Mart opposed a 2013 bill in the District of Columbia that would have raised the minimum wage for retailers with individual stores of 75,000 square feet or larger and that have companywide annual sales of $1 billion or more.

Wal-Mart pretends like they look into the details of each new bill, and determine if it will ‘help the economy’. What they leave out is that they primarily look out for themselves, and only support bills that will give them a competitive edge over smaller competitors.

Big government that will pass regulation if lobbied – or bribed – hard enough is at the root of all this cronyism. The only way to solve this problem is if we limit the scope of government.

7Also, millennials tend to be skeptical of monopolies, despite realizing a simple truth. There has been no time in history where a business was a monopoly – that is reducing prices dramatically low to force out competition then gouging prices super high – without government’s help. Not one single time.

Now some of these ‘evil businesses’ did lower prices to drive out competition, but never have they then gouged the price. When a business lowers prices it makes it easier for the poor to live in ‘luxury’.

Those lower prices – that may have been used to bankrupt an inadequate business – directly increase the standard of life for all people. However, lower prices exponentially help the poor because the wealthy can already afford these products. And the business who took the risk into developing a cheaper product gets rewarded for their success, and for being able to enhance the life of the most amount of people. It’s a win-win.

If that same business were to then gouge the prices – given that government regulations did not make it nearly impossible for a smaller business to start – then a new business could fill the void and drive the original business out of business. Monopolies are not natural, they require government to manifest into fruition.

Remember, government cannot directly create anything – they must be funded through taxpayer’s money. A government cannot ‘fail’ despite how much debt we rack up for future generations to pay off. It’s despicable, immoral, and it’s time we tell government – and as a result big corrupt businesses – that they are not too big to fail!


If you are interested in learning more about the history of monopolies, or any other issue discussed in today’s post, please don’t hesitate to invest in your own human capital – knowledge – by signing up for Tom Woods’s Liberty Classroom by clicking the banners above.

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