Corruption

As our corporate overlords debate our debt-ceiling, Global Guerillas talk about the causes of Soviet- Style corruption.

From [Global Guerrillas: Legal Decay in a Soviet Style Collapse]

"Here's a question I got recently: What happens to the legal system when the US suffers a Soviet style collapse? Answer: It will rapidly decay.

Here's a simple formula for this (it works for both legal systems and government bureaucracies):

Low legitimacy + slashed operating budgets = rampant corruption

Regardless of any decay in the legal system, business will still be conducted. Small disputes will be resolved through the existing system, with graft tipping the scales or speeding the outcome. Large disputes involving substantial wealth transfer will be something else entirely. These disputes will be resolved through the ability of one party or the other to apply the threat of (or actual) violence to the negotiation process.

These pressures won't only be the result of counterparties that have access or control the large mafias/gangs/militias (or corporate militaries) that will spring up during economic collapse (far larger than we've seen the US to date). Threats will also be mounted by government/defense/security officials that use their government sanctioned command of violence (police, SWAT, military units, etc.) as a means to personal enrichment.

This has pretty interesting implications for those GG readers that have large amounts of wealth in the current system. You might not be able to retain it or move it or transact with it in a collapse scenario w/o putting your life (and those around you) at mortal risk.

NOTE: We've already seen a taste of what's to come with the financial crisis of 2008. In sum: it was the biggest financial crisis to date, full of fraud and deception across the board, and almost nobody was punished for it. In fact, most were rewarded for their malfeasence with generous government bailouts and huge bonuses."

Hmm,... Low legitimacy + slashed operating budgets = rampant corruption?

This looks to me like the path conservatives have had us on for years, de-legitimize the government and slash budgets.

They've been de-legitimizing government in the eye's of the people by highlighting and laughing at government waste, inefficient bureaucrats, etc. They ignore the same things in private industry and exaggerate those in government. They make stuff up if necessary, whatever it takes to make government look bad. Fox News has been the major contributor the last few years. Then, the various rounds of tax cuts have crippled the ability of government to perform, reinforcing the bad image. Now they want more cuts.

Of course, the democrats helped this along when they de-legitimized Bush with the stolen election crap but the wing-nuts have gone over-the-top crazy with the Obama hatred.

Anyway, if they keep at it, I doubt it will be too long before some group starts voting with bullets.

tnb