It is estimated that around a thousand families maintain control of vast areas of the economy. This business class sought to consolidate itself and protect its wealth through political office. The National Democratic party was their primary vehicle for doing so. This alliance of money and politics became flagrant in recent years when a number of businessmen became government ministers with portfolios that clearly overlapped with their private interests.
That\’s why you don\’t want politics to control business: because the businesses will then enter politics and gain control.
You do want politics to set the ground rules of course. But not to go any further, and start \”protecting infant industries\”, or picking winners, or offering monopolies. Because as sure as eggs is eggs, the mechanism by which such protections and privileges are granted will become captured.
Such capture isn\’t exclusive to big business, nor even crony capitalism, of course. The GM and Chrysler rescues (where the bondholders got screwed and the unions didn\’t) show that other power groups can capture the State.
The current rumpus over solar feed in tariffs in the UK is a more minor example. The insistence that big bad business should not be allowed to benefit, only nice cuddly small scale locals, is simply an illustration of the way that this sector is, at least in part, controlled by those who have an overarching economic agenda quite separate from hte provision of carbon free energy.