In the Weekly Standard.com
The Obama Economy
June 13, 2011, Vol. 16, No. 37
Whether by design or happenstance, President Obama is the greatest proponent of crony capitalism since FDR proposed cartels under the National Recovery Act. He does big favors for corporate supplicants and recipients of government subsidies while largely ignoring small business. His pet in the business community is Jeff Immelt of General Electric, which relies heavily on federal contracts and paid no taxes in 2010. His nominee for commerce secretary is John Bryson, whose company, BrightSource, is propped up by government subsidies. Obama’s aides are now touting the bailout of General Motors as one of his greatest achievements. Chrysler, not so much.
As stated many times in this blog, capitalism is the competition of ideas. When ideas are forced from the ruling class we benefit only when they select the right and best ideas, and how will we ever know what the best ideas are when there is no competition? Crony capitalism is to capitalism as national socialism is to socialism. This administration is strongly favoring selected big businesses and unions over the small business people that have led us out of most previous recessions.