Dear Friends,
It seems to me, Boeing’s opening a plant in China, is a symptom of a much larger problem with corporate governance. The incentive systems within the modern corporate structure are pernicious at best and outright counter productive at worse. Obviously because of regulations. Government regulates corporations, and as I have pointed out many times in these articles, regulation only exists to give a politically favored participant the upper hand in an economic exchange. They create, nourish, and husband, the corporate system while the corporate system, feeds the political system payola. Corporations are not controlled by people with skin in the game, as firms were years ago, they are run in many cases by political zealots.
The corporate system was “intended,”to allow diversification of ownership of large firms, from the bourgeoisie to the proletariat. The first shareholder owned firm,that I know of, was the British East Indies Company, and it paid a handsome dividend as well. The idea was that a professional class of people would run large firms for the benefit of the shareholders. Having relatively unaccountable professionals would lead to better run companies, that would be more productive, in the long run. In fact the case has been quite the opposite. The modern creative destruction paradigm is, firms are created and grown by an entrepreneur, then sold to Wall street, where the “professional” class slowly destroys the firm, such as IBM, Apple, Digital, etc…
Instead of making the economy more efficient, the corporate system ended up exchanging the bourgeoisie for the new class, which was the goal of people like Woodrow Wilson all along. Rather than unaccountable Bourgeoisie, owning and controlling the means of production, the ownership became more diversified, as the control became more concentrated. Concentrated in the hands of people, who often have politics as their main driver of action, rather than the best interests of the shareholders. The administrative system is their nursery, school and parent. The new class’ power comes from the administrative system and so they pay it homage. This creates a feedback loop, government promoting the corporate system, and the corporate system promoting government.
The corporate system could not be what it is today however, without it’s lap dog, the government. The corporate and political systems go hand in hand. Both run by the new class… the administrators, bureaucrats and corporate executives. The bureaucrats regulate their brothers and sisters, and their siblings in turn, open their doors to ex government officials. This is facilitated by the fact they have the same indoctrination, and therefore the same goals… as Woodrow Wilson’s favorite book, Philip Dru Administrator, is based on. Unlimited government by a professional class, unelected, unaccountable and ruthless in their task of making the world a utopia. They are cut from the same psychopathic cloth, as was Caesar, Hitler, Stalin, Mao and Lenin, who also were not afraid to break a few eggs.
So, the corporate government system, has taken control of the means of production from the hands of people with skin in the game, and given it to political zealots, intent on a one world government utopia. Which is facilitated by a captured bureaucracy that in large part agrees with the goal, and end to nationalism and a start to a glorious new globalism. Against the tenets of their own ideology, they have accepted post modernism as their philosophy, as an expedient, to forward the goal of global socialism. Boeing opening it’s plant in China will lead to a transfer of aviation technology to China, we all know this, no one more so than the new class executives at Boeing. So why do it? To forward the goal of globalism, at the cost to the shareholders, who are the hated bourgeoisie anyway.
Sincerely,
John Pepin
