Skip to comments.Trump Carrier Deal Weathers Bogus ‘Crony Capitalism’ Charges
Posted on 12/06/2016 9:10:00 AM PST by GonzoII
When President-Elect Donald Trump helped convince Carrier Corp. to keep 1,069 jobs in the Indianapolis region, you would have thought he had all employed all manner of socialism to achieve this success judging from the criticism lobbed by political adversaries.
The opposition to the Carrier deal came mostly from the Right but in some cases, came from the Left, too.
Former Alaska Gov. Sarah Palin, an early Trump supporter, called it special-interest crony capitalism. The Weekly Standard founder and the father of NeverTrump, William Kristol, said it violated the rule of law and was arbitrary government bullying (although Trump is not yet sworn in). Kristol also called it crony capitalism.
And Paul Krugman, the left-wing economist and columnist for The New York Times, called it what else? crony capitalism. Krugman said on Twitter that it violated the spirit of Republicans free-market talk, which is remarkably restrained rhetoric for the sometimes kooky Krugman.
(Excerpt) Read more at lifezette.com ...
With all due respect, this crap started with Sarah Palin.
I agree. SHe shot off her big mouth without knowing anything about the deal.
I have no idea what went down, but I’m sure it was something like, stick with us. We’re going to lower your taxes and regulation.
In other words, he is NOT going to be showing favorites like Obama. He’s going to create a climate for all companies.
It is utterly amusing to me to see supposed Libertarians and self styled True Conservatives busy mouthing the Marxist economic dogma that all economic output is property of the State and any time the state takes less it is a Government subsidy.
That is the base for this absurd crony capitalism argument. This dogma that any reduction in government taxation MUST be paid for by increased taxation on others is utterly absurd nonsense completely at odds with our system of Government.
No you foolish children. In our system, the State is granted revenues by the people as a collective good. It is their property granted TO the Government not vice versa. It is up to the voters in IN to render the judgment on their Representatives at the voting booth if this was a wise move or a foolish move for the collective to reduce tax burdens on Carrier in exchange for the collective good of keeping the 1100 jobs.
The other glaring error in this absurd argument is the assumption that the economy is a zero sum game. Thus a reduction here means an addition in taxes there. NO children it does not.
The Five on Fox ran the numbers. By keeping the 1100 jobs the State gets a net gain of $2.5 million in taxes from the 1100 jobs maintained. In addition, the State does NOT have to pay out mandated retraining, unemployment and welfare costs of having 1100 productive highly paid workers taken out of the the work force. The economy is a dynamic force not static as you try to make it be in your Crony Capitalism argument.
The final lesson here is, again, we see the reason the Movement Conservatives have been the least effective political force in US History.
Letting people keep their OWN money rather then taxing it way from them is GOOD. It is the heart of Conservatism.
We are not going to undo 100 years of creeping socialism by stamping out feet and holding our breath demanding ideologically perfect political dogmas. Yet here we go again with the usual Movement Conservatives trying desperately to spin a win as a defeat because it does NOT fit their ivory tower dogmatically pure political fantasies.
That mindset is EXACTLY why Movement Conservatives have been the most political ineffective group in US History. They all are so busy whining about everything not being dogmatically ideologically perfect they have accomplished nothing politically since 1980.
Rather the cling to these day dreams of some mythical perfectly ideologically pure fantasy land, it time Movement Conservatives learn to live in the REAL world of poltical incrementalism rather then their ideologically pristine ineffective bubble world.
With all due respect to Sarah Palin, I sort of agree.
This was the very first time I have (ever, I believe) had any issue with Sarah Palin.
But she was way, way off-base on this issue.
Sarah Palin posted a correction yesterday - she did NOT say that- her words were twisted by the media (surprise!)
In a way, Sarah Palin is right.
However, just about ALL of our economy is running on crony capitalism at this point.
I dare say you will find very few large enterprises that are not at least in part relying on subsidies, tax breaks or some form of favoritism at this point.
It’s a symptom of government that has grown WAY too big at every level. You won’t fix that overnight.
Trump has just redirected it to benefit the average man and not lobbyists or insiders.
Thanks for posting that.
Then I back down, and return to my previous, and still, now unbroken support for Ms. Palin.
Very cool. Go Sarah Palin.
Equating this to crony capitalism boggles my mind.
Isn’t crony capitalism the practice of giving special favors to a company in return for political support?
I think all Trump did was to point out that he is going to make the business climate favorable for companies like Carrier. That doesn’t seem like quid pro quo to me.
Every business in Indiana is facing the same conditions Carrier faces.
Sarah Palin needs to learn when to just say nothing.
I am not going to stand by and give President Trump a free pass when he engages in policies that we have been excoriating Obola for.
If it's good for Carrier, it should be good for every business in Indiana. And America.
I think she demurred just a tad too, too long. Events have passed her by, IMO.
Alaska lives entirely off natural resources.
I sincerely hope that the election of Trump signals a change in the American people to wanting effective government that works, instead of government by ideology.
Have at it. Go stand with her - wherever she is now.
He promised them what he has been promising throughout his campaign.
As for the portion of Carrier still leaving, I have no doubt Trump has not backed down from his parallel promise to impose tariffs.
A relatively easy thing to do would be to enact a US content standard for federal purchases, that higher US content gives a company an advantage in bidding for federal contracts. If half your air conditioner is built outside the US, good luck winning government contracts unless all your competitors are likewise building their product outside the US.
There are so many regulations. These companies are telling him the specific ones that are killing them. Ford brought up CAFE the other day. Is it really crony capitalism when regs are removed?
Was very disappointed that Sara Palin didn’t know the difference. She was probably being vindictive because she hasn’t received a job in the Trump administration. Her public criticism of the Carrier deal probably insures she won’t have a place at the table.
Will do. One thing we know she’s not doing is cutting sweetheart deals with one business while leaving others out in the cold.
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