Here’s your economics lesson for the day. Corporate cronyism is a particular pet peeve of mine. I’ve written on it, ruminated on it, and seethed about it for some time now. Today, John Hinderaker of Powerlineblog.com gives us a short presentation on some of the more visible sins of cronyism in the Obama administration.
I wrote about my participation in the Koch brothers’ semi-annual seminar in Palm Springs two weekends ago here. Along with Peter Schweizer, I did a presentation on cronyism. My speech focused on corporate cronyism, while Peter’s centered on the sort of political cronyism that he detailed in his book Throw Them All Out. I included in that post a couple of the Power Point slides that accompanied my speech, and several readers wondered whether they could see the whole thing. So I fleshed out my outline into a complete text, and have interspersed the slides where I showed them in Palm Springs. Here it is, a pretty good introduction, I think, to the subject of corporatism in the Age of Obama:
I should note, while the current administration is the worst of the worst when it comes to this, it is hardly alone. Congress has for decades managed to steer the flow of capital in ways that pleases it, at the expense of market economics. And other Presidents have also succumbed to the temptation to favor some companies or industries over others.
And as I’ve written before, every government intrusion into the market distorts that market, and hence makes it less efficient. That means less growth for the economy, fewer jobs, and higher costs. Who pays? You and me. Both through taxes to pay for the cronyism, and through higher prices for goods and services.