GOP and Obama Support Crony Capitalism

The Washington Examiner’s senior political columnist, Tim Carney, has a new column out about how Republicans have lost a key talking point against President Obama. Instead of being able to distinguish themselves from the President by claiming he is for crony capitalism and government support of the private sector, Republicans in the House voted to expand the very government institution responsible for such taxpayer-funded market distortion: the Export-Import Bank.

The good news is that conservatives within the party are fighting back. Conservatives recognize that there is no difference between President Obama’s loan guarantees to “green” energy companies – like the failed Solyndra – and loan guarantees that benefit major U.S. corporations:

“So the Right is mostly agreed: Government shouldn’t be running a subsidy bank.

“But the business lobby is almost unanimously agreed in the opposite direction. The Chamber of Commerce, National Association of Manufacturers, Business Roundtable, American Petroleum Institute and most big businesses have lobbied to reauthorize the agency and raise the lending cap to $140 billion.

“On Wednesday, House Republicans sided with their business base over their conservative base — 147 House Republicans, including the entire leadership, voted for reauthorization, compared with 93 nays.

“This represents progress, compared with past reauthorization votes. In the 1990s, fewer than 40 Republicans voted to abolish. In 2002, 50 Republicans, or 23 percent, voted no on reauthorization. This year’s 93 nays represent 38 percent of the House GOP caucus. Notably, Paul Ryan voted against Ex-Im, and freshman Rep. Mike Pompeo, who has Boeing manufacturing in his district, also voted nay.

“So, in the wake of the 2008 bailouts and Obama’s corporatism, the Republican rank and file are steadily moving against corporatism. But the GOP leadership still isn’t ready to wage war on corporate welfare — which leaves one less line of attack on Obama.”

You can read the full article here.


Please Share Your Thoughts

5 thoughts on “GOP and Obama Support Crony Capitalism

  1. Help eliminate wasteful government programs, expunge regulations whose only reason for existence is to protect existing entities from honest competition in a free marketplace. Re-ignite political and economic freedom so that we may pursue our lives in a free market where we will create the most successful economy possible, and promote the ideals of freedom and liberty in America.

  2. The public knows far too little about this program. Just as social welfare programs enable individuals to be inefficient, lazy and irresponsible, so too does corporate welfare enable such flaws in corporations. For instance, we bailed out GM, but did we fix GM? Throwing money at that problem may only have kicked the proverbial can down the road, but may not guarantee correction of the root-cause problems with GM. Case in point is the Volt. We’ve simply got to get better, and there may be no better mechanism for tough love, then promoiting and monitoring the free, unecumbered marketplace.

  3. I don’t believe you have it right….when one corporation favors another and does business with with it…this is croney capitalism. When the government give guarnteed loans to corporations, this is know as croney socialism. Let’s get our terms straight if we’re going to have a discussion.

  4. Pingback: What Is To Be Done?

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