GE is one of “The Big Cronies.” (Maybe we should put together a “Big Crony” stock index. GE, GM, Goldman, Monsanto, etc.) Live by the crony, taxpayer funded sword. Die by it.
Is there no one who had their phone on during any of these $250,000 speeches? Perhaps that’s the way to get any transcripts.
So long Fairfield County…Howdy South Boston.
GE has decided to pull up stakes in Connecticut for the even friendlier climes of Massachusetts. All it took was $145 million from Boston taxpayers.
Don’t worry, I’m sure it’ll be recouped. No way the move is just a headline grabber for the mayor and that in the long run it will cost Bostonians. That sort of thing never happens with this sort of corporate welfare.
Now, who’s Boeing and who is Congress in this picture?
On October 9 members of the House, pretty much every Democrat (Which is just a crying shame but speaks to conformist nature of the party under Ms. Pelosi, Dems used to hate Ex-Im.) and a smattering of Republicans (but just enough) signed a “discharge petition” to bring a vote on the Export-Import Bank to the floor of the House through extraordinary means. The giant corporations, specifically Boeing, GE, Caterpillar and a few others have deployed their lobbyists in an all out assault on the anti-crony insurgents in Congress.
The GE Building
Boeing and GE really really want to keep the taxpayer underwritten Export-Import Bank. It’s a sweet deal for them and they (along with a few other companies) have deployed an army of lobbyists in an effort to keep the boondoggle alive. In this case it appears that one of GE’s lobbyists stepped over the blurry ethical line. Not that this isn’t to be expected. There’s a lot of taxpayer money potentially at stake.
(From The Washington Free Beacon)
A General Electric employee pressed a Wisconsin legislator to falsely blame the closing of a facility there on the expiration of federal subsidies,
The Export-Import Bank of the United States which provides below market financing underwritten by taxpayers for giant corporations needs to die. Its charter wasn’t renewed in June, which is excellent, but the “bank” could still be revived if John Boehner attaches a revival to a big bill, a must vote on bill, like the highway bill. According to the hyper liberal, extreme statist, uber crony capitalist Maxine Waters, a Democrat, that just may be in the cards.
You better believe it. If they can. There’s is so much money and power behind keeping the corporatist boondoggle going it is hard to see how the Ex-Im dragon could be slain for good. (It can be slain however.) The corporations are for it. The unions are for it. The President is for it. The Democrats in Congress are for it. Many of the Republicans in Congress are for it.
Who’s against it? The taxpayers, a few modern liberals like Ralph Nader,
“Cronyism is not hip anymore,” she said. “If you stand for cronyism, you’re doing it at your own political risk in a way that wasn’t true even three years ago.”
GE got caught with its pants down. It over leveraged itself like much of Wall Street before the 2008 Crash and then begged Hank Paulson in Bush’s Treasury to save the company from its bad bets. Which Paulson did – or rather WE did. Now, fully indemnified and then some, GE is getting rid of its financial division. Exiting the scene free and clear. No problem. No pain. Everything’s fine. No Thank You to the taxpayers.
In many ways actually.
Free enterprise. Not crony capitalism.
As anyone who reads us regularly knows we are fans of letting people and businesses keep as much of their own money as possible. At least tax breaks don’t cost the taxpayer anything and if the (tax break) money is kept in the private sector that money is much more likely to be used efficiently. (Of course the Fed has deeply undermined this mechanism with QE and near 0% rates.) However, as we also say, tax breaks can still be a form of crony capitalism.
C.J. Prince, the author of this article does an excellent job of examining crony capitalism and the associated dangers to the economy. Crony capitalism does indeed hurt us all. Even Boeing and GE will likely be hurt in the long run. If the USA becomes a truly cronyist economy growth will limp along (if we are lucky), dynamism within the economy will suffer from lack of oxygen, wealth will slowly erode away from the middle class, and we will wake up one day and find ourselves outclassed by freer economies in other parts of the world.
Ex-Im isn’t just “Boeing’s Bank.”
If there are 2 guys who know about and have benefited from crony capitalism Bill Clinton and GE CEO Jeffery Immelt are those guys. They are political business people. They are fully on board with the corporate state. They believe that government and business should partner. They see no problem with crony capitalism. The stronger the partnership between government and business the better because that means more risk is underwritten by the US taxpayer while the crony class gets to reap the profits.
Photo credit: Tim Pierce https://www.flickr.com/photos/qwrrty/8152000142/?
I am sorry progressives but this woman is out to lunch. She’s the same old same old. She does the whole doe eyed earnest thing very well, but when it comes down to it she appears to be yet another old school corporatist.