126). .
One must ask, is corporatism a good system or a bad system? Or is it just the next step? David Rockefeller once said ".somebody has to take governments' place, and business seems to me to be a logical entity to do it," (Newsweek International, 1999). This essay aims to discuss both the positive and negative effects the corporative economic system has on the state and people within it, incorporating the USA that actively runs under this economic system despite their public belief in not doing so. In this essay that discusses corporatism the USA is the example. My argument is that corporatism is fundamentally flawed as it biased towards certain groups primarily the economically elite, whereas capitalism is not a system biased towards any group of people, but where emphasis lies on equality, and a non-discriminatory arena for all to progress in. .
The history of the development of American corporatism must be understood. Corporatism got its start around 1900 in what is referred to as the progressive period. As mentioned earlier this was the time of the night-watchman state. This night-watchman state was at the time clearly too weak to make the larger corporations act with economic rationality and fairness. The capitalist economy started to show its lack of stability in self-regulating commodities. During the Great Depression the trust in the economies ability to reliably deliver material goods without government intervention. It can now be seen that corporatism is essential. Importantly, it becomes psychologically necessary, independently of whether government can deliver on its promises, because the general public automatically turn to government as their protector. Roosevelt's New Deal' was a big leap forward towards corporatism. It is fair to say that the New Deal merely introduced types of social and economic reform familiar to many Europeans for more than a generation. However the primary intention, that government should take responsibility for making certain the flow of material goods to the people was quickly welcomed by the American people, which continues today whether the like to admit it or not.
