Quotulatiousness

June 24, 2014

“How should we do x?”

Filed under: Government, USA — Tags: , , , — Nicholas @ 09:11

The urge to provide a national (or even a global) solution to a given problem is almost always mistaken. Kevin Williamson explains why:

“How should we do x?” The main problem is not the answer, but the question itself, and the assumptions behind that question, the belief that an answer exists.

Some policies must, by their nature, be implemented at the national level. If you’re going to have a sovereign nation-state, you need a national defense apparatus (which is not to say you need our national-defense apparatus; there are alternatives), and you probably need a national immigration policy, etc. The basic architecture of the current American constitutional order, which is a remarkably wise and intelligent piece of work, contemplates national policies in those areas in which the several states interact with foreign powers and in those cases in which the states cannot coordinate efforts or resolve disputes among themselves on their own. That, along with some 18th-century anachronisms (post roads, etc.) and some awful economic superstitions (political management of trade, a political monopoly on the issuance of currency), constitutes most of what the federal government is in theory there to do. That and fighting pirates and others committing “felonies on the high seas,” of course, which is awesome, and we can all feel patriotic about fighting pirates.

But … if we look at federal programs by budget share, almost nothing that Washington does requires a national policy. There’s national defense, of course, at around 20 percent of spending; you may believe, as I do, that that number is probably too high, but national defense is a legitimate national endeavor. But most federal spending is on various entitlement programs — Social Security, Medicare, Medicaid, and various other welfare benefits. There is not much reason for any of these programs to exist at all — government is a criminally inept pension planner and a thoroughly incompetent insurance company — and there is very little reason for any of them to exist as uniform, one-size-fits-all national programs. Start digging into that non-defense discretionary spending and you end up with very little more than a catalog of crony payoffs and political favoritism.

There is no more reason to believe that a single government-run pension scheme is in each individual’s best interest than to believe that a single city or single model of car is right for everybody. And the people who design and plan these programs know that. The point of Social Security — like the point of insisting that health insurance is “a right” rather than a consumer good — is to redefine the relationship between citizen and state. That is the real rationale for a national pension scheme or a national insurance policy. For several generations now, we’ve been changing the very idea of what it means to be an American citizen. It used to mean being entitled to enjoy liberty and republican self-governance under the Constitution. Eventually, it came to mean being eligible for Social Security, functionally if not formally. Now it means being eligible for Obamacare. The name of the project may change every generation, and its totems may evolve from Bismarck to Marx to “the experts” — that legion of pointy-headed Caesars who are to be the final authority in all matters in dispute — but the dream remains the same: society as one big factory under the management of enlightened men with extraordinary powers of compulsion.

June 16, 2014

The Kronies: Laughing All The Way to the Export-Import Bank

Filed under: Humour, Politics, USA — Tags: , — Nicholas @ 12:26

Published on 16 Jun 2014

Get Konnected at http://thekronies.com/

In this very special episode of “The Less You Know”, Johnny and Bobby learn a valuable lesson about campaign finance.

With a crucial re-authorization vote looming, the Representatives must decide whether or not to support the U.S. Export-Import Bank. Johnny and Bobby nearly make a terrible mistake, one that could endanger their political careers!

Luckily, Bankor and Ariel Stryker appear just in time to set the Reps straight…straight on the path to re-election. Including a special appearance by “the Big man” himself, this episode is sure to capture hearts, minds, and votes.

June 1, 2014

In the Progressive Era, “big business led the struggle for the federal regulation of the economy”

Timothy Carney says we should know much more about socialist historian Gabriel Kolko and his careful debunking of the “Teddy Roosevelt as trust-buster” myth:

Every American knows the fable of the Progressive Era and that “trust buster” Teddy Roosevelt wielding the big stick of federal power to battle the greedy corporations. We would be better off if more people knew the work of the man who dismantled this myth: historian Gabriel Kolko, who died this month at age 81.

Kolko was a self-described socialist and a Harvard-educated historian, but he had little use for the liberal political establishment’s pious regard for the Progressive Era of 1900 to 1916. And he was never credulous enough to believe that government intervention in the economy was generally in the public interest.

For today’s politics, Kolko’s most important book was The Triumph of Conservatism, published in 1967. His thesis: “The dominant fact of American political life” in the Progressive Period “was that big business led the struggle for the federal regulation of the economy.”

The standard history of the Progressive Period — which painted Teddy and the Feds as the scourge of Big Business — relied too much on the public rhetoric of TR and his cohorts. Kolko dug deeper to show how Big Business truly felt about Big Government, and how the Progressives truly felt about Big Business.

Many corporate titans in the early 20th Century, buying into the pervasive hubris of the day, believed that a state-managed economy was the inevitable end of a rational society — the conclusion of what Standard Oil’s top lobbyist Samuel Dodd called the “march of civilization.” Competition, in their eyes, was destructive redundancy.

[…]

Liberal scholar William Galston at the Brookings Institution explains the economics at play. “Corporations have sizeable cash flows and access to credit markets, which gives them a cushion against adversity and added costs,” he wrote in 2013, explaining why the big guys often welcome regulation. “[S]mall businesses often operate much closer to the margin and are acutely sensitive to policies that threaten to drive up costs.” Also, “CEOs can hire experts to help them cope with added regulatory burdens and can spread the costs over a large workforce.”

Kolko’s research smashed the favorite tales of the Progressive myth. When Upton Sinclair wrote The Jungle, which included descriptions of rancid meat-packing plants, Roosevelt saw Sinclair as personally despicable, but a useful asset in his quest to impose federal meat inspection. Sinclair opposed Roosevelt’s regulation, and Kolko relates that “the big packers were warm friends of regulation, especially when it primarily affected their innumerable small competitors.”

By “conservatism,” Kolko meant “stability,” and preservation of the status quo. This is often the aim of corporate giants. It is consistently the consequence of federal action. And it is reliably the enemy of entrepreneurship, economic growth and free choice.

May 27, 2014

WSJ – “…the Canadian government is paying almost 80% of his developers’ salaries”

Filed under: Business, Cancon, Economics, Government, Technology — Tags: , , — Nicholas @ 07:32

Stephen Gordon linked to this rather boggling Wall Street Journal article that outlines how the Canadian and provincial governments are attempting to lure start-up technology businesses to locate in Canada with vast bribes of taxpayer money:

Imagine you are launching or running a startup and there’s a place where all of your developers — the biggest expense for most tech companies — cost one quarter what they do in Silicon Valley. Sure, it’s cold there, but talent is plentiful and the locals are friendly. Would you trade your hash browns for poutine?

Adam Adelman, co-founder of Mighty Cast, a startup working on a new kind of wearable technology, recently told me the Canadian government is paying almost 80% of his developers’ salaries. And that’s not a tax credit. It’s a rebate, a check he gets from the government whether or not his startup makes money.

Even at Mighty Cast, a two-year-old hardware startup, salaries have been 80% of expenses. Combine that with the lower salaries demanded by engineers in Montreal, where Mighty Cast moved its headquarters after its genesis in Silicon Valley, and Mr. Adelman says he’s able to stretch his angel round of investment four times as far.

So the federal government is literally giving away money to start-up tech companies to compete at a huge advantage against actual Canadian companies? Nearly 80% of the payroll is funded from taxes, partly collected from the domestic competition? Does this seem like a good idea to anyone who isn’t already drawing 100% of their income from Ottawa?

The government is particularly badly suited to picking technology winners, and this program sounds like a vast give-away for the well-connected few, literally at the expense of everyone else. Maple-flavoured crony capitalism, with the official stamp of approval of Stephen Harper’s “conservative” government.

QotD: What capitalism should do now

Filed under: Business, Economics, Quotations — Tags: , , , , — Nicholas @ 07:13

Just as democracy can be corrupted by repressive populism, so can capitalism be perverted by “rent-seeking” — when people seek to gain more than the goods and services they produce are worth to others.

Sometimes they use political influence to sustain monopolies or to prevent new entrants and innovators from competing for custom. Sometimes they use governments to provide subsidies from taxpayers, or to prohibit cheaper imports.

Sometimes they do deals with governments that provide taxpayer funds to cushion losses derived from incompetence or recklessness. These forms of crony capitalism detract from capitalism’s real benefits and achievements.

What capitalism should now do is to free itself from these rent-seeking perversions and spread its benefits as widely as possible.

It should act against anti-competitive practices to give people instead the power of free choices between competing goods and services. It should spread ownership of capital and investment as widely as possible through such things as personal pensions and individual savings accounts.

It should lower the barriers to entry so that everyone can aspire to start up a business to bring goods and services to others. It should seek a tax system that rewards success rather than punishing it.

Capitalism should become inclusive, making it as easy and as attractive as possible for as many as possible to set aside some part of present consumption in order to invest some of their resources and their time in providing goods and services that others will want. It should become true capitalism.

Dr. Madsen Pirie, contributing to “Viewpoints: What should capitalism do?”, BBC News, 2014-05-26.

April 22, 2014

Obama’s afterthought appointment as US ambassador to Canada

Filed under: Cancon, USA — Tags: , , — Nicholas @ 09:13

Ezra Levant isn’t impressed with President Obama’s choice for ambassador:

Barack Obama waited nine months before replacing the last U.S. ambassador to Canada. The post was empty, and Obama just didn’t care.

He doesn’t much like Stephen Harper – compare Obama’s icy body language towards Harper, to Obama’s deep bow when he met the Saudi king, or his high fives with the Hugo Chavez, the late ruler of Venezuela.

Don’t feel singled out. That’s how Obama treats many of America’s traditional allies. He spied on German Chancellor Angela Merkel’s cellphone. The White House’s bust of Winston Churchill was returned to the United Kingdom when Obama became president.

Get used to it. Obama treats his friends worse than his enemies.

You’d think a $600-billion-a-year trade relationship between Canada and the U.S. would warrant sending a new ambassador quickly. Apparently not.

When Ottawa was finally blessed with Obama’s choice this month, it was yet another Chicago crony capitalist – Bruce Heyman, a former Goldman Sachs banker who, together with his socialite wife, bundled $1.7 million for Obama’s election campaign.

That’s what Obama thinks of the diplomatic corps: a reward for personal service, and an incentive to future donors.

April 9, 2014

Being “pro-business” does not mean the same as being “pro-market”

It’s a common misunderstanding (especially with people who don’t know what laissez faire actually means):

For years, Republicans benefited from economic growth. So did pretty much everyone else, of course. But I have something specific in mind. Politically, when the economy is booming — or merely improving at a satisfactory clip — the distinction between being pro-business and pro-market is blurry. The distinction is also fuzzy when the economy is shrinking or imploding.

But when the economy is simply limping along — not good, not disastrous — like it is now, the line is easier to see. And GOP politicians typically don’t want to admit they see it.

Just to clarify, the difference between being pro-business and pro-market is categorical. A politician who is a “friend of business” is exactly that, a guy who does favors for his friends. A politician who is pro-market is a referee who will refuse to help protect his friends (or anyone else) from competition unless the competitors have broken the rules. The friend of business supports industry-specific or even business-specific loans, grants, tariffs, or tax breaks. The pro-market referee opposes special treatment for anyone.

[…]

GOP politicians can’t have it both ways anymore. An economic system that simply doles out favors to established stakeholders becomes less dynamic and makes job growth less likely. (Most jobs are created by new businesses.) Politically, the longer we’re in a “new normal” of lousy growth, the more the focus of politics turns to wealth redistribution. That’s bad for the country and just awful politics for Republicans. In that environment, being the party of less — less entitlement spending, less redistribution — is a losing proposition.

Also, for the first time in years, there’s an organized — or mostly organized — grassroots constituency for the market. Historically, the advantage of the pro-business crowd is that its members pick up the phone and call when politicians shaft them. The market, meanwhile, was like a bad Jewish son; it never called and never wrote. Now, there’s an infrastructure of tea-party-affiliated and other free-market groups forcing Republicans to stop fudging.

A big test will be on the Export-Import Bank, which is up for reauthorization this year. A bank in name only, the taxpayer-backed agency rewards big businesses in the name of maximizing exports that often don’t need the help (hence its nickname, “Boeing’s Bank”). In 2008, even then-senator Barack Obama said it was “little more than a fund for corporate welfare.” The bank, however, has thrived on Obama’s watch. It’s even subsidizing the sale of private jets. Remember when Obama hated tax breaks for corporate jets?

February 17, 2014

The dirty not-so-secret about Olympic venues

Filed under: Sports — Tags: , , , , — Nicholas @ 10:44

Every time somebody suggests that Toronto be seriously involved in an Olympic bid, I become a big supporter of the other competing cities. Toronto is dysfunctional enough without adding the cost, disruption, and anti-democratic central planning aspects of hosting the Olympic games. In Samizdata, Michael Jennings looks at the shenanigans going on both in Sochi with the current Winter Games and in future venues:

The 2018 Winter Olympics are in Pyeongchang county in South Korea. Assuming that North Korea does not collapse or try to start a war between now and then, this will be straightforward, as these things go. A vast amount of money has been spent building new world class ski resorts at Alpensia and Yongpyong. These have largely been built already. They were built in anticipation of Pyeongchang winning the Winter Olympics. Pyeongchang also made unsuccessful bids for the games of 2006 and 2010, and has therefore been building for some time. There are already large financial black holes from the construction of these venues, but one cost overruns will be anywhere near as bad as have come from the highly corrupt race to get things built on time that took place prior to Sochi. Plus there have been and will be time for lots of test events to get the venues right. Of course, there are still highly expensive new highways and railways to be built, and a lot of indoor venues to be built for the ice events in the coastal city of Gangneung. As national pride is at stake, South Korean taxpayers will undoubtedly suffer painfully, but South Korea is a rich industrial democracy with competent people in charge. These games will likely go smoothly, but they will cost a lot — just not as much as Sochi.

The venue for the 2022 Winter Olympics has not yet been decided, but the IOC announced last year there were six final bidders: Stockholm (Åre), Sweden; Oslo, Norway; Krakow, Poland (Zakopane, Poland and Jasná, Slovakia); Almaty, Kazakhstan; Lviv, Ukraine; and Beijing (Zhangjiakou), China. [It has always been the case that the indoor ice events would be held in a city and the outdoor snow events in a mountain resort. In recent times the need for the city to be close to the resort has been relaxed somewhat, and I have listed the mountain resort(s) in brackets if it is a long way away from the official host city].

Sweden has already withdrawn their bid, and Norway appears to be close to doing so. The reason: they are seeing the immense expense and horrible shenanigans going on in Sochi. A little secret of the Olympics is that many of the the same people run it every time — the host city largely just picks up the bill. Once the event has ridiculous expenses and large amounts of outright corruption attached to it, this all comes with it to the next venue. Receiving kickbacks on construction projects becomes what it is all about.

Relatively uncorrupt places like Norway and Sweden look at this, and find that they want nothing to do with it. As great centres of winter sport, they have many of the right facilities already, meaning less scope for construction industry kickbacks. This means that for some of the IOC the fact that a country is already prepared for the Games is actually a negative rather than a positive.

Anyway, though, the point is that the two countries best able to host the games end up not being serious candidates.

As for the others: Poland and Slovakia would run the games just fine, but a fair bit of infrastructure and facilities would need to be built. Krakow is a lovely city. Zakopane is a lovely resort, and the Tata mountains are a suitable place for the games, even if the best downhill resorts are on the Slovakian side rather than the Polish side. (Some of the infrastructure construction would not be too counterproductive: Poland built lots of new roads, railways stations and airport terminals before the Euro 2012 soccer tournament, most of which were needed anyway and were part of Poland’s long term post-communist infrastructure modernisation). The Olympic games are not what money should be spent on in the present economic circumstances, though, and one also hopes that the richer countries of the EU are past paying for the Olympics to be held in the poorer countries of the EU (see Athens 2004). But with the EU, who knows?

February 12, 2014

In praise of Frédéric Bastiat

Filed under: Economics, Europe, France, History — Tags: , , — Nicholas @ 08:48

Douglas Carswell wishes more people knew about nineteenth-century economist Frédéric Bastiat:

I reckon that one of the greatest Frenchman of all time is a fellow called Frédéric Bastiat (1801-1850). Not heard of him? France, I reckon, would have remained a truly global nation if more people had.

A free market, Classical liberal thinker, Bastiat grasped how wealth is created — and how parasitical elites and vested interests will seek to live off the productivity of others.

Nations rise, he could see, when various naturally parasitical interests were reined in, making production more fruitful than parasitism. Nations sunk into mediocrity, or remained there, when the parasites got their way — and other people’s wealth.

Far from being just a creature of his time, Bastiat speaks to us today. His spoof petition of the candlestick makers (they lobbied politicians to block out unfair competition from sunlight) tell us a great deal about the behaviour today of energy renewable interests and central bankers.

As a free market thinker, Bastiat was up there on a par with Adam Smith or Richard Cobden. Yet unlike Smith and Cobden, for all his brilliance, Bastiat had little impact on the French body politic. French lassies faire gave way to dirigisme. In terms of French politics, it is almost as if Bastiat might never have existed. And a once global player, presided over by a succession of enarques and corporatist cliques, sunk slowly into Hollandesque mediocrity.

My fear is that free-market thinkers on this side of the Channel could turn out to be little more than British Bastiats. Already the land of Adam Smith is run by a big, bloated state bureaucracy. The country that produced Cobden trades with the world on the basis of quota, not free competition.

January 27, 2014

The Kronies – Get konnected!

Filed under: Government, Humour, Media — Tags: , — Nicholas @ 08:56

Published on 22 Jan 2014

Get Konnected at http://www.thekronies.com

The Kronies are in action…Mandating, Tarrify-ing, Inflating, and Boondoggling their way to profits powered by their special konnection to the G-Force. Watch Big-G and his team stomp out competition!

H/T to Popehat for the link.

January 22, 2014

Private prisons – crony capitalist palaces of injustice

Filed under: Business, Law, USA — Tags: , , , — Nicholas @ 00:01

The United States has seen a vast increase in the number of drug offenders (the majority of them non-violent) and a corresponding increase in the private prison industry. As Wendy McElroy explains, these are not free-market solutions to a government problem: they’re monuments to crony capitalism:

The United States leads the world, by a large margin, in the production of at least one thing: prisoners. We have 25 percent of the world’s inmates, but just 5 percent of the world’s population.

Where do they come from? Well, since the Anti-Drug Abuse Act of 1986, the number of American inmates has risen from approximately 300,000 to a currently estimated 2.3 million. This statistic points to the role of drug-related victimless “crime” in creating prisoners.

There are other sources. The “private prison complex” is a creation of crony capitalism through which privileged corporations are paid well for the “care” of inmates and for leasing out prison labor to other businesses.

Ten percent of American prisons are now “privately” operated, for-profit businesses. Between 1990 and 2010, the number of for-profit prisons rose 1600 percent, far outpacing the growth of public ones or the population at large. The likelihood of being arrested is already higher in America than anywhere else in the world. That likelihood will rise if the financial incentives to imprison more people continue or increase.

[…]

“Private” prisons are run by corporations to which government outsources the care of inmates. The corporation receives X tax dollars for each prisoner, quite apart from the actual cost of care. This builds in an incentive to skimp on services such as food and medical care. And, indeed, most prison contracts include a “low-crime tax” or “lock-up quota.” This system means taxpayers compensate the corporation for empty cells if the number of prisoners falls below a set quota. A recent report, “Criminal: How Lockup Quotas and ‘Low-Crime Taxes’ Guarantee Profits for Private Prison Corporations,” found the average “occupancy guarantee” to be 90 percent; in four states, it is between 95 percent and 100 percent. Thus the “private” prison is guaranteed a tax-funded profit.

[…]

The “private” prison industry is private in the same sense that crony capitalism is capitalist. Namely, not at all. It is the antithesis of a truly private industry that competes in the free market, does not accept tax funds, and cannot compel labor. By contrast, the “private” prisons enjoy a monopoly over a service that is created by laws and sentencing policies. They receive tax money and preferential treatment. They exploit captive labor through circumstances similar to plantation slavery.

January 15, 2014

QotD: Early 20th century American imperialism

Filed under: Americas, History, Military, USA — Tags: , , , — Nicholas @ 00:02

I spent thirty-three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups. This is typical with everyone in the military service.

I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested.

Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.

Major General Smedley Darlington Butler, USMC (1881–1940), War is a racket, 1935.

January 14, 2014

Noam Chomsky – TPP is an “assault” that furthers corporate “domination”

Filed under: Economics, Government, Pacific, USA — Tags: , , , , , — Nicholas @ 08:59

The Trans-Pacific Partnership (TPP) is perhaps the most secretive “free trade” deal ever negotiated. It’s apparently so important that the details be kept from the electorate that even our elected representatives are not being given much information on what has been discussed or agreed. It’s not just libertarian and free market advocates that find this lack of transparency disturbing, as this piece in the Huffington Post shows:

The Obama administration’s Trans-Pacific Partnership trade deal is an “assault,” on working people intended to further corporate “domination,” according to author and activist Noam Chomsky.

“It’s designed to carry forward the neoliberal project to maximize profit and domination, and to set the working people in the world in competition with one another so as to lower wages to increase insecurity,” Chomsky said during an interview with HuffPost Live.

The Obama administration has been negotiating the TPP pact with 11 other Pacific nations for years. While the deal has not been finalized and much of it has been classified, American corporate interest groups, including the U.S. Chamber of Commerce, have already voiced strong support for the TPP, describing it as a free trade deal that will encourage economic growth. The Office of U.S. Trade Representative has also defended the talks, saying the TPP will include robust regulatory protections. But labor unions and a host of traditionally liberal interest groups, including environmentalists and public health advocates, have sharply criticized the deal.

Chomsky argues that much of the negotiations concern issues outside of what many consider trade, and are focused instead on limiting the activities governments can regulate, imposing new intellectual property standards abroad and boosting corporate political power.

“It’s called free trade, but that’s just a joke,” Chomsky said. “These are extreme, highly protectionist measures designed to undermine freedom of trade. In fact, much of what’s leaked about the TPP indicates that it’s not about trade at all, it’s about investor rights.”

December 15, 2013

Wall Street’s dream matchup in 2016 – Christie vs Clinton

Filed under: Business, Politics, USA — Tags: , , , , — Nicholas @ 10:27

Sheldon Richman says the big money folks on Wall Street know who they’d like to see at the top of the tickets for the 2016 presidential election, and they might just get their way:

If you share my belief that the major obstacle to the free society is the national-security/corporate state, 2016 is shaping up to be a year of apprehension. The Wall Streeters, who are among the biggest advocates of partnership between big government and big business, are looking forward to a presidential contest between Hillary Clinton and Chris Christie, a contest the bankers can’t lose.

They have already discounted any populist rhetoric Clinton may need to fight off a primary challenge from, say, Sen. Elizabeth Warren. As “one well-placed Democrat” told Politico, “Wall Street folks are so happy about [having Clinton run] that they won’t care what she says.”

[…]

In Clinton, then, we have a friend of the bankers and a friend of the military-industrial complex, since as secretary of state she was an advocate of a muscular foreign policy, including intervention in Libya. (When she was in the Senate she voted to give George W. Bush a blank check to invade Iraq, and when she was first lady, she pushed Bill Clinton to drop bombs on the Balkans).

“And if the banking class is delighted with Clinton lately,” Politico notes, “the feeling appears mutual.”

Wall Street’s first choice on the GOP side is apparently Chris Christie, the governor of New Jersey. He had his own meeting with the big-money crowd in July 2011. Politico calls him “the candidate with the best chances at winning the support of bankers in the next presidential election.”

At that 2011 meeting: “Henry Kissinger [!], the former secretary of state, stood and pleaded with the governor to enter the presidential race for the good of his country. Christie would, of course, resist their pleas, becoming perhaps even more alluring to those on Wall Street as a prospect for 2016.”

December 10, 2013

The pundits are “mad as hell” and hope we’re ready to man the barricades for them

Filed under: Media, Politics, USA — Tags: , , , — Nicholas @ 09:03

Jim Geraghty notes the common theme among anguished pundits both left and right:

One problem with the “this is intolerable, and we need an uprising!” cry is that we’ve already had at least two “uprisings” at the ballot box in recent years: The Obama wave of 2008 and the Tea Party wave of 2010. But their remedies for the “intolerable” condition are contradictory — one envisions a much greater role for government in Americans’ daily lives, while the other concludes government’s growing role exacerbates the problems instead of solving it.

Ironically, the two sides agree in their denunciation of crony capitalism, but what they usually mean is that they’re opposed to the other guy’s crony capitalism. Obama voted for TARP and then exploited its discontent, shrugged at the taxpayers getting stuck for the bill of Solyndra and other green energy boondoggles, then did his part to help walking conflict of interest Terry McAuliffe become governor of Virginia. The flip side of the coin too many Republicans are all too comfortable with their own versions of crony capitalism — loans and loan guarantees subsidize U.S. exporters, state economic development boards, and Bob McDonnell’s cozy financial arrangements with donors, among other examples. While crony capitalism isn’t really a driving force behind our national sense of diminishing economic opportunities, it certainly doesn’t help anyone except the cronies, and enhances the sense that wealth is built through cheating and secret deals, not hard work or innovation.

(Notice that this expression of economic discontent is so generic that everybody’s got a grievance, and nobody thinks they’re the beneficiaries. This is how you get multimillionaire rapper/mogul Jay-Z selling Occupy Wall Street-themed t-shirts, or the CEO of bailed-out insurance giant AIG explicitly comparing the treatment of his company to lynchings in the South, or the number of members of Congress who have complained about their $174,000 per year salary.)

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