In a previous post we noted that if the Koch Brothers really wanted to get even richer they’d be calling for larger government not a smaller one. Big government, absolutely, indisputably works for the already rich and connected. A small government which allows room for entrepreneurs and innovation on the other hand works for the middle class and those who are willing to work hard.
Basically a crony economy is a plantation economy. The big shots control the levers of government, which control the everyday lives of the “serfs.”
A free enterprise economy on the other hand empowers the serfs who are willing to strike out on their own and create new value in the economy.
The aristocracy has always hated an empowered merchant class. It’s no different today.
Obama knows in the end who butters his bread. Obama loves him some corporations and he gave a nod to a few last night. But in the State of the Union Address the president failed to mention many of the other companies which have shown him favor and which his administration has smiled upon.
Obama has a good game going, which mostly fools his progressive base. While railing against “corporate greed” he happily cozies up with the corporate greedy. It’s where the money is after all.
As usual, he only gives you partial information. This enables him to put a positive spin on what is happening.
Did the father of today’s crony capitalist economic policies invent some of today’s most successful personal investment strategies?
Easy for you to say Mr. CEO.
OK all you billionaires out there who worry about paying a lower percentage of your income in taxes than your secretary, here’s your chance to pony up—for the country.
The House of Representatives just passed the Buffett Rule Act with a voice vote. Now Warren Buffett, Bill Gates, and Ted Turner (is he still a billionaire?) can give all they want to Uncle Sam just by checking a box and writing in a number. Assuming the Act moves through the Senate and gets to the president’s desk of course. And assuming the president signs it.
The “Buffett Rule” would raise income taxes on those who earn over $1 million per year to 30%.
The president says (publicly) that it’s not about “fairness” or income redistribution, it is about closing the deficit. He admits that it won’t solve the problem but that the rule would be “a move in the right direction.”
Yes, that makes sense. It’s not like we have a bloated and antiquated New Dealish, centrally planned, government behemoth that gobbles up tax dollars and produces little in return or anything. What we need to get our house in order is more money from taxpayers.That’ll turn things around in no time.
Legends don’t come much bigger than Warren Buffett. The man in Omaha, player of the ukulele, value investor, advocate of taxing the rich, friend of Barrack Obama, King of Crony Capitalism.
Wait, what was that last bit?
Yes, sadly Warren Buffett is not the advocate for capitalism and economic fair play that many of us thought he was. He is right up there, and perhaps surpasses Jeffery Imelt of General Electric, for the title of King of Crony Capitalism. (They both consult with the current administration.)