Regular readers of this blog will recall my frequent criticism of businesses that get in bed with big government. We’ve seen it with automobile manufacturers and café standards. We saw pharmaceuticals and various health entities support ObamaCare. And we’ve witnessed energy firms jump on the climate change train.
My Dec. 2, 2015 post, “Businesses fall in line on emissions reduction, “showing the logos of supporting firms, exemplifies the cronyism.
Perhaps the best example of crony capitalism is General Electric CEO Jeffrey Immelt and his ties to the Obama administration. Sitting next to the president as his Jobs Council chairman, gave him an inside track to government spending in the energy and medical equipment sectors, both on GE’s list of product offerings.
Most big companies went along for the possibility of securing government business, others did so to appear they were “on the team.” Small businesses couldn’t afford it and suffered heavily, especially with the onslaught of regulations.
Remember President Obama and Immelt chuckling over the lack of “shovel-ready” jobs. Click here to see video. Chttps://www.youtube.com/watch?v=4p4-vPrcDBo
Kimberley A. Strassel recently named names in her Wall Street Journal column, tying Pfizer and the AMA to the Affordable Care Act; Solyndra, Fisker and A123 Systems to the stimulus package; Boeing and Caterpillar to Export-Import Bank subsidies; and GE, Duke Energy, Alcoa, and Pacific Gas and Electric to the green left.
Verizon’s Lowell McAdam and GE’s Immelt have recently broken their silence by speaking out against Bernie Sanders. McAdams said Sanders is “uninformed” and “disconnected from reality.” Immelt refuted Sanders’ assertion that companies are “destroying the moral fabric of this country.”
“Who was the last prominent CEO to go on an extended public riff about the evils of Dodd-Frank, or the ridiculousness of the ‘equal pay’ debate, or the nonsense that is Obama energy policy?” asks Strassel.
Personally, I would like to see CEOs support the end of corporate welfare, perhaps in exchange for a lower corporate tax rate.
Strassel also criticized companies that divide their political giving between the party (Republican) that supports their free-market interests, and the party (Democrat) that routinely refers them to the Justice Department for investigation.
During my years heading up my company’s political action committee, I successfully fought against this silly procedure, and contributed strictly on the basis of a candidate’s support of issues important to our business.
With Hillary Clinton and Sanders campaigning against business interests, seeking more taxes and regulations and expanded company benefits, this isn’t the time for business to be silent.
CEOs need to step back from the “not I” refusal to take a stand and be proud of American business. As Strassel points out, “They create jobs, prosperity, investment and tax revenue. They are the essence and the requirement of a democracy.”
(If you would like a free subscription to kramerontheright, simply scroll to the bottom of the column at right.)
