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Corporatism and the Boston Tea Party

From Wikipedia (section to discuss underlined and bolded):

Though the Company was becoming increasingly bold and ambitious in putting down resisting states, it was getting clearer that the Company was incapable of governing the vast expanse of the captured territories. The Bengal famine of 1770, in which one-third of the local population died, caused distress in Britain. Military and administrative costs mounted beyond control in British-administered regions in Bengal due to the ensuing drop in labour productivity. At the same time, there was commercial stagnation and trade depression throughout Europe. The directors of the company attempted to avert bankruptcy by appealing to Parliament for financial help. This led to the passing of the Tea Act in 1773, which gave the Company greater autonomy in running its trade in America, and allowed it an exemption from the tea tax which its colonial competitors were required to pay. When the American colonists, who included tea merchants, were told of the act, they tried to boycott it, claiming that, although the price had gone down on the tea when enforcing the act, it was a tax all the same, and the king should not have the right to just have a tax for no apparent reason. The arrival of tax-exempt Company tea, undercutting the local merchants, triggered the Boston Tea Party in the Province of Massachusetts Bay, one of the major events leading up to the American Revolution.

-East India Company, Wikipedia

The Boston Tea Party was the American colonists’ response to corporatism and the injustice of special favours for a specific corporate entity. The section mentioned above is headed "Financial troubles". So clearly the East India Company turned to influence peddling to get special treatment and ward off its own demise. That is how wealth is often acquired.

Isn’t this what’s happening now? And isn’t this the opposite of the narrative Marc Faber was spinning? Have a go at the full Wikipedia entry. It makes for good reading.

About 

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.

1 Comment

  1. Falk Burger says:

    I’m getting too old for this crap! Once again I have to make a major adjustment in my world view because I finally discover I’ve been lied to? NOOOOOOOOOO!! It’s the instability I abhor. Actually, the change itself is a welcome one, and long overdue. I always thought the original tea party patriots were nuts to protest such an infinitesimal tax, now I see they were right on. Next – the Boston Massacre, which was really about the English defending native townships from murderous land grabs by terrorist colonists.

  2. Falk Burger says:

    I’m getting too old for this crap! Once again I have to make a major adjustment in my world view because I finally discover I’ve been lied to? NOOOOOOOOOO!! It’s the instability I abhor. Actually, the change itself is a welcome one, and long overdue. I always thought the original tea party patriots were nuts to protest such an infinitesimal tax, now I see they were right on. Next – the Boston Massacre, which was really about the English defending native townships from murderous land grabs by terrorist colonists.