I couldn’t agree with Senator Rubio more. The GOP has consistently embraced crony capitalism, just like their Democrat brethren. The Republicans like weapons systems, the Dems like welfare programs. But both parties pick and choose. The object for both clubs is to separate tax dollars from the taxpayers to benefit those who will help a particular politician most. Many in Washington can’t even imagine Washington DC working in a different way.
Another excellent article from Bill Freeza at CEI.
Boy, is he right. As we document all the time here there is a lot of money to be made in “anti-poverty” programs. From JP Morgan’s administration of the EBT program in various states (in Florida alone the contract is over $100 million) to Big Ag which is impacted greatly by what is put on the “food stamp list,” there are a lot of revenue streams for giant businesses in the welfare state.
Crony capitalism is pervasive. Both major parties are engaged in it and in the attached article we see a great example of an important organization which has long championed “small government” officially but has now abandoned its principals. The American Conservative Union is afraid that a new breed of small government types are actually going to try to make government smaller. This means cuts to defense and transportation. Both are conduits to constituencies the ACU is friendly with.
Many big businesses have figured out that it’s better to play the game, a game which they can manipulate, than to actually compete in the open market. Why innovate when a company can legislate away the competition?
All too true. Big corporations have deep pockets to both deal with regulation and also to mitigate regs specific to that business. Small business, the bread and butter of the American economy, has no such luxury.
We give The New York Times a hard time (rightfully) on occasion, but the database their staff put together on state grants to corporations is fantastic, and easy to use.
In the wake of the president’s triumph, the crony capitalists knew they had to come and kiss the ring. Today they did that.
