Crony Capitalism – Page 13

Is the United States becoming a corrupt enterprise ?

May 22, 2014 by Michael Kennedy

The activities of the Obama administration have progressed into Mafia territory the past five years. I never thought things could change this fast but it seems I was wrong. The latest example ?

Soon after the US Government sold the last of its stake in General Motors, the company began to announce a huge number of recalls. These safety defects were known for years but unreported until the federal government sold its interests, at a huge loss of course.

Taxpayers, drivers, and investors who assumed the government would never fail to disclose rampant safety problems in a company it owned can rest easy, though. Instead of investigating fatally flawed GM components while the U.S. government was the company’s largest single owner, the NHTSA was busy harassing Toyota — one of GM’s top competitors — for an alleged malfunction that led to “unintended acceleration” in Toyota vehicles. Toyota was fined and eventually bullied into recalling 8 million vehicles over the issue.

Toyota is probably the safest, highest quality auto maker in the world. I drive one and have bought Toyotas for my daughter.

And what was the final result of the NHTSA investigation?

Many drivers may have confused the gas and brake pedals a problem that may account for “the vast majority” of the unintended acceleration incidents the agency investigated, NHTSA deputy administrator Ron Medford said at Tuesday’s NHTSA press briefing.

“What mostly happened was pedal misapplication where the driver stepped on the gas instead of the brake or in addition to the brake,” Medford said.

The Toyota cases were always about driver error, not safety of the auto. Only the trial lawyers and a complacent government permitted this raid on a company to proceed.

Is that the only case ?

“… a uniquely malignant threat to American exceptionalism”: Sen. Mike Lee Nails It

May 13, 2014 by Chicago Boyz Archive

Government of course remains the problem, but the nature of that problem has evolved dramatically since Reagan’s first inaugural. If Republicans want to grow their party into a national majority, we must begin, as Reagan did in 1981, by confronting our present crisis: America’s large and growing Opportunity Deficit, namely, immobility among the poor and insecurity in the middle class.

Compounding the shortage of opportunities among the poor and middle class is an unholy union of big government, big business, and big special interests that twists public policy to benefit Washington insiders unfairly at the expense of everyone else.

This is America’s growing crisis of crony capitalism, corporate welfare, and policy privilege, and it represents a uniquely malignant threat to American exceptionalism.

RTWT

Income inequality: Social justice or crony capitalism?

April 26, 2014 by Kevin Villani

The political movement Occupy Wall Street has shaped the tax and spending proposals of the Obama administration’s budget and political debate on the premise that our capitalist economic system is rigged to favor the top-earning “one percenters.” But income inequality can result either from capitalism or politics, each for better or worse.

Historically, political elites focused on enriching themselves at the expense of the general public: In 1773 patriots threw the tea into Boston Harbor of the East India Tea Company, granted a “royal charter” in 1600. The U.S. system was founded not just on the principles of democracy but on limited government complementing private market capitalism that encouraged individuals to “pursue happiness” — accumulate wealth — on merit rather than political connections. Support for the less fortunate was provided by family members, religious and other charitable organizations.

Believing (wrongly) that class envy against the new economic elites — innovative entrepreneurs — would cause revolution, Karl Marx offered the socialist alternative “from each according to his ability, to each according to his need” with politics supplanting merit. Despite totalitarian methods universally employed by governments seriously pursuing the socialist model leading to the murder of tens of millions, one historian recently concluded that communism reduced workers “to shiftless, work-shy alcoholics.”