What Happened to Democracy & Capitalism
There is a new book by Martin Wolf called the “The Crisis of Democratic Capitalism.” The English-born author is the chief economic commentator for the Financial Times. The main premise of the book is that without classical liberal democracy, there can’t be capitalism and the opposite is also true.
Liberal Democracy flourished after the West vanquished Germany and Japan and then fought against the totalitarian Soviet Union. The U.S.S.R. was beaten by its own failure to provide for its people both economically and politically because of a corrupt system.
Throughout the period, the U.S. had two parties, Democrat and Republican, that believed in both democracy and a market system. In the past 30 years, the country has become more inclined to sacrifice both on the altar of political expediency. The Democrats had always believed in a more centralized and political economy. They have now been eclipsed in that regard by the once proud free-market Republicans.
In the name of a “conservative” social doctrine that has completely warped the Republican Party, capitalism and democracy have been banished and things like abortion, religiosity, and wokeness have been elevated. Trump began the dismemberment of the party of free markets to rile up the fringe and avenge any personal slight. This has been carried out even further by the DeSantis generation that has decided that a war on social matters, a lessening of democratic values especially for those that disagree, and interference in markets not for fairness but as payback.
DeSantis and Disney are a great example of government bullying private corporations not to stop unfair markets but to punish non-economic policy disagreements. The completely made-up war on woke is jeopardizing Florida’s economic miracle. We are just beginning to see the ramifications now.
Government is the most powerful force in the United States. If it decides to target a company as an enemy, then the company cannot hold out. The company’s only recourse is the courts where it hopes it can receive a fair deal. This is now where Disney finds itself in its battle with DeSantis.
As of December 2022, the state has spent $16.7 million dollars on the DeSantis war on woke in the governor’s legal fees. That is the taxpayers of Florida are subsidizing the DeSantis political operation. I am sure by the time 2023 ends, that figure will approach $50 million. There wasn’t a referendum on any of this asking the voters to approve the spending of their tax dollars in this way.
Disney is one of the largest private employers in the state, with 75,000 Floridians working in some capacity for it, is being denigrated for expressing an opinion.
This is unprecedented. If Disney or any company was restraining trade or practicing unfair labor laws, then the state should exercise its police powers. DeSantis instead has taken the track of authoritarian dictator instead of a democratically elected governor.
In his quest not to give up power, he has had his submissive legislature change Florida law to allow him to run for president without resigning as governor. There was an excellent reason for the law’s earlier passage. Running for president requires travel across the U.S. How can you tend to your Florida constituents while you talk to New Hampshire diner patrons and Iowa farmers? We witnessed the problems when the governor was at an out-of-state book signing while Fort Lauderdale was under water last month.
Once you decide that democracy can be sacrificed to authoritarianism, you can begin changing public schools, universities, and libraries. You can ban ideas because those ideas get in your way. Democratic ideals and free markets can be suborned to further your authoritarian goals.
While last year’s Florida legislative session was at the beginning, it is with this year’s session where many woke ideas and policies have just been passed and will be implemented beginning in July. How will this affect companies coming to Florida? I believe it will have a negative outcome for two reasons. The first is that employees may not want to locate in a place where they are not accepted. The second reason is that companies cannot count on being treated fairly and like their competitors.
What we are beginning to see is that the woke war is leading to fewer researchers and professors flocking to Florida’s public colleges. And as they leave or never even consider coming here, their research funding also does not come here. It is estimated that when next semester begins, colleges and universities may see unfilled vacancies throughout the system.
In grades K-12, there are currently 10,000 teacher vacancies according to Andrew Spar, Florida Educational Association president. This has led to all types of schemes to fill those vacancies including liberal use of unlicensed teachers. As of now there are 8 school district superintendent slots available out of 67. Usually there are two or three at any one time. That does not include districts like Martin County that promoted from within instead of trying to find a new outside superintendent.
While younger K-12 students can’t leave the state unless it is a family move, college students are having no such qualms. A recent poll from Gallup and the Lumina Foundation found that regardless of party affiliation, students want to enroll where there are less restrictive laws on reproductive health, diversity, race, and gender. 80% noted they would prefer to study in a state with greater access to abortion services.
74% of respondents said they would not enroll in colleges where diverse concepts are not taught. While this may not matter for many current in-state applicants, it does have an affect on those registering from out of state. Further since certain topics and views are not allowed to be taught, students fear they may not be competitive in a national job market.
To enforce his regime’s political and economic dictates, DeSantis has used Florida Department of Law Enforcement agents to do his bidding. According to The Washington Post, two FDLE agents were sent to Texas last year to help arrange for the DeSantis political stunt of flying border crossers to Martha’s Vineyard. He has also instructed agents to spy on busses from out-of-state because they could contain the undocumented though registered and waiting adjudication of their asylum claims.
He is attempting to consolidate control of a private police force that is dedicated to him and not rooting out state crimes. DeSantis has created an election police force to intimidate. There are no rampant voter violations as is witnessed by the arrest of only 20 people with many of these actions dismissed by the courts. This is a classic authoritarian tactic to control the state.
Our democracy and our free market are in danger. If the United States was Venezuela, Trump would have been Hugo Chavez who was a charismatic sometimes irrational leader. DeSantis is more similar to the less than inspiring Nicolas Maduro. Maduro has been relentless in consolidating power and removing democratic and market forces in the country.
The United States is on the precipice of losing the self-determination we hold dear. The American people need to wake up and return to the pluralism that has served us well since our earliest days. There is nothing that preordains our capitalism and democratic form of government to continue.
