He calls this "corporate socialism" and says: "Corporate socialism makes it possible for Wal-Mart to grab market share by undercutting the competition that did not get subsidies, while appearing to win because it was just more efficient."
McCraw's Prophet of Innovation, in conjunction with the 40th-anniversary edition of John Kenneth Galbraith's The New Industrial State, a highly influential book that essentially called for corporate socialism. Schumpeter and Galbraith (1908-2006), who overlapped briefly on Harvard's economics faculty, are almost perfect mirror images, with the former lionizing the entrepreneur and praising the constant "mutations" wrought by the market and the latter celebrating corporate structures that supposedly tamed the business cycle and guaranteed stability.
Depreciation has been delayed because Japan, in its reaction to post-bubble deflation, has reverted to a kind of corporate socialism, protecting weak companies through rapid and massive increases in public spending.
Utah Governor Mike Leavitt, using an increasingly popular euphemism, called the Utah Winter Games "a public-private partnership." A more accurate description would be corporate socialism -- a variant of the economic formula pioneered in Mussolini's Fascist Italy.
Jude Wanniski, the self-designated "wild man" of supply-side economics and sometime guru to Forbes, touts a flat tax as a means of "getting rid of the corporate socialism in the system." Speaking for "unborn business" and citing Karl Marx--apparently the Republican patron saint this year--Wanniski explains that "men of wealth have always used their power to keep taxes high to strangle new growth." Wanniski and Forbes argue that the institution of a flat tax would eliminate "the principal source of political corruption and pollution in Washington.