The fascist political economy (herein referred to as “corporatism” or “corporatist”) must, by necessity of maintaining its very existence, evolve into an economic system that is characteristically inflationary, identity oriented, and authoritarian. Each of these three aspects can be shown to be the necessary outcome of policies implemented during the evolution of corporatist economies as the “power-elite” strives to maintain legitimacy and control.
Inflation (or government directed expansion of the money supply):
If I may be permitted to mangle a quote from one of the 20th Centuries’ great inflationists (Milton Friedman), Inflation is always and everywhere a form of taxation.
The elegance of the inflation ‘tax’ is it’s clandestine nature. It’s benefits are focused onto politically favored constituencies but the pain of paying the tax is not immediately felt nor is it focused onto a particular population who might be inclined to protest.
Contrary to modern teaching, inflation does, in fact, IMMEDIATELY affect prices. First, the money creation gives value to otherwise worthless assets such as those enumerated on bank balance sheets or unproductive labor. The purchasing power awarded in exchange for these worthless assets or unproductive labors constitutes an immediate price inflation for them. Through the velocity of money (the number of times a unit of currency is exchanged in a fixed period), this counterfeited “demand” works through the various orders of goods in the economy pushing up their prices as well, culminating eventually in a general increase in prices.
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