Because Pragmatically Distributed has a keen interest in distinguishing when a state intervention is or is not appropriate under Capitalism, we now consider the example Trump has set lately with his interventions to prevent the outsourcing of manufacturing jobs.
We do so not just to understand Trump’s policies, but to also help hone our reader’s understanding of what the state role in Hamiltonian Capitalism should be.
Where do his actions fit under our vision of Capitalism?
As we defined the correct government-private actor role in Capitalism –
- Capitalism – Government actors set the common business environment without favoring particular private actors; individual private actors are then free to take any business action within the boundaries of the established environment.
- Libertarianism – Private actors set the common business environment without favoring particular private actors; individual private actors are then free to take any business action within the boundaries of the established environment.
- Liberalism – Government actors set the common business environment without favoring particular actors; government actors then decide on all individual economic actions within the boundaries of the established environment.
Because Trump is directly pressuring private businesses like Carrier and Ford to change their operational plans, his actions as a state actor have in these cases been closer to the Crony Capitalist variant of Capitalism. In Crony Capitalism the government, after arranging the conditions of the business environment, generally allows private actors to act as they see fit within the environment but intervenes directly in the affairs of private companies when politically expedient.
Crony Capitalism is the form of Capitalism now practiced by most of Northeast Asia and Russia.
The role for government to assume in Capitalism, preferred by Hamiltonians, remains the purer, Anglo-Saxon type where the state makes no decisions for and plays no favorites with private actors so long as they do not violate regulations or laws.
Continue reading “Trump, Crony Capitalism & Manufacturing Job Deals”




