Governments Do Not Control Banks or Corporations

Governments do not control banks.  The recent Volcker Rule, a part of the Dodd-Frank Act (H.R. 4173, 111 Congress), to take effect in 2015, focuses on proprietary trading rather than on the specific types of speculation (derivatives, etc.) that were the primary causes of the 2008 financial crisis.  “You can’t really trace any of the major financial failures to proprietary trading by the giant banks”, says The Washington Post’s, Neil Irwin.  See also, Ted Kaufman, The Volcker Rule Will Not Work.

Nor do governments control corporations. Rather they’re joined in reciprocal relationships for mutual gain. Joseph Lelyveld, writing in the New York Review of Books (6/6/13, p. 27), refers to the government-corporate relationship as “the Wall Street-Washington symbiosis”. A full discussion of the government-corporate conjoins for the benefit of both is in John Kenneth Galbraith, The New Industrial State. Moreover, the general trend is for corporations to prevail over governments in many policy and issue areas, including environment, pharmaceuticals, agribusiness, and energy.  The title of David Korten’s book captures the reality: When Corporations Rule the World.

About georgebeam

George Beam is an educator and author. The perspectives that inform his interpretations of the topics of this blog–-as well as his other writings and university courses -–are system analysis, behaviorism, and Internet effects. Specific interests include quality management, methodology, and politics. He is Associate Professor Emeritus, Department of Public Administration; Affiliated Faculty, Department of Political Science; and, previously, Head, Department of Public Administration, University of Illinois at Chicago
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