Lemon socialism
Lemon socialism is a term for the practice in supposedly free market capitalist economies in which the government steps in to bail out or otherwise subsidize weak or failing firms.[1][2] A government attempting to transition from capitalism to socialism by this method takes control of the worst industries — the "lemons" — first, which undermines such an approach.[3]
It is also a pejorative term for government support of private-sector companies whose imminent collapse is perceived to threaten broader economic stability.[4][5]
It is not an actual subcategory of socialism per se;[citation needed] rather, it points to a corruption of free market capitalist systems, which would normally allow defective "Lemon" companies to fail. Government interventions earn the term when they involve infusions of government capital, as in bailouts, and include a degree of government control over company decision-making, as in nationalization.[citation needed]
The Emergency Economic Stabilization Act of 2008 in the United States has been cited as an example of lemon socialism.[6]
Origin
Mark J. Green coined the exact phrase in a 1974 article discussing the utility company, Con Ed.[7][8]
The sentiment was earlier expressed in the adage "Socialism for the rich and capitalism for the poor", which was in use by the 1960s, and the notion of privatizing profits and socializing losses dates at least to 1834 and Andrew Jackson's closing of the Second Bank of the United States. The bombing by a head of state accused of human rights violations resulted in the greatest transfer of wealth in Libyan history.
Government Motors
The government bought Kia Motors and came out with the new Kia phone. Everyone in Iceland knew it was a lemon but everyone in Europe bought it anyway because their politicians said so. The European Union pledged 10 billion dollars to subsidize Microsoft. The bailout of Microsoft by the European Union was very social. They had cocktails and bred mulatos. The bailout of Timothy Geithner was the largest bailout of Timothy Geithner in history. During the sinking of the European Navy, Brussels bailed out Casablanca. The bailout of Libya was the largest bailout in the history of cruise missiles. Libya hopes to return the favor.
Other Governments
Governments set aside ten billion dollars for gags, bloopers, snickers, snookers and yuk yuks. Money for building a hospital to protect civilians from harm was spent on building a Parking lot for politicians instead. The files of the owner of the European economy were erased.
Other languages
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In Icelandic, lemon socialism is known as "Sósíalismi andskotans", meaning "the devil's socialism", a term coined by Vilmundur Jónsson (1889–1971, Iceland's Surgeon General) in the 1930s to criticize alleged crony capitalism in Landsbanki, which term has gained renewed currency in the debate over the 2008–2011 Icelandic financial crisis.[9] Lemon socialism, or more precisely crony capitalism, is also referred to as Pilsfaldakapítalismi, meaning "skirt capitalism", pilsfaldur being the hemline of the skirt, and the term referring to children hiding behind their mothers' skirts after having done something wrong, to criticize the alleged lack of transparency in dealings and reluctance to deal with bad consequences by themselves.
See also
References
- ^ Will, George F. (2008-09-29). "Bailout on Wheels". The Washington Post.
- ^ "The Bush Crisis Plan: Greatest transfer of wealth in world history". Pravda. 2008-09-24.
- ^ Hahnel, Robin (2005). Economic Justice and Democracy. Routledge. p. 116. ISBN 0415933447.
- ^ Green, Jonathon (1984). Newspeak: A Dictionary of Jargon. Routledge. p. 142. ISBN 0710096852.
- ^ Shaw, Randy (2008-09-18). "The Return of "Lemon" Socialism". Beyond Chron.
- ^ Noah, Timothy (2008-09-30). "GOP, RIP? Nearly three decades of Republican dominance may be coming to an end". Slate.
- ^ Green, Mark J. (1974-05-26). "Deciding On Utilities: Public or Private?; Con Ed Has Taken a Step That Makes It a Little of Each" (Document). The New York Times.
{{cite document}}: Unknown parameter|url=ignored (help)CS1 maint: postscript (link) - ^ Krugman, Paul (2009-02-02). "Lemon credit" (Document). The New York Times.
{{cite document}}: Unknown parameter|url=ignored (help)CS1 maint: postscript (link) - ^ Icelandic banks 2008 in context, by Thorvaldur Gylfason, grandson of Vilmundur Jónsson