Crony Continental Capitalism
There are those who decry capitalism for its faults and propensities to reward some at the expense of others. There are others who, more accurately, say what we have in the US is crony capitalism, which is not to be confused with true capitalism. The gaming to lure Continental Tire’s new plant to North Carolina with cash incentives is a perfect example of crony capitalism.
First, to put the money in perspective: $45 million – a so-called economic development grant North Carolina floated in its failed bid to land the tire titan’s new plant – is about one year’s payroll to Continental’s proposed plant. So for one year they’ll be making tires with no labor costs. Not bad work if you can get it. The problem, as everyone is aware, is the politicians.
Here in North Carolina, where the plant wasn’t located, accusations abound. House Speaker Thom Tillis, that bastion of conservatism, blames Gov. Beverly Purdue, that bastion of liberalism, who blames Republicans in general, who blame Democrats in general, for North Carolina not getting the plant.
Their carping reminds me of a poorly coached football team after a loss. Various players heap blame on other players, even though they’re all on the same team. Here the Republicans and Democrats, obviously all on the same Demopublican team, are attempting to spend $45,000,000 of money that is not theirs, just so they can say ‘they’ brought the jobs to North Carolina.
There is no difference in their political position on this; it was an intra-party squabble about how best to apply the money demanded of them by Continental; how best to do their part in this crony capitalistic exercise. Obviously, South Carolina politicians played the game better.
But this is only one example of what politicians and big business are doing wrong. Actually I don’t fault the businessmen; they’re no different than those receiving Social Security, Welfare, Medicaid, Food Stamps, College Loans and Mortgage Interest Deductions. The money is available, so the attitude is take what you can get. Which leaves us the politicians as the guilty party. (How surprising)
Politicians have evolved from being those who are elected to provide a level playing field for all the citizens, to being business solicitors. There are two basic reasons for this. The first is politicians want to do things that make the people happy so they’ll get reelected. The second is almost the reverse of the first: the people expect politicians to do things to take care of them. In the instant case, that is to get the people jobs. That whining demand of the populace to the elected has become ubiquitous and politicians do what they can to satisfy the whining. Having access to billions of tax dollars at the state level, trillions at the federal level and millions at the local level, there are numerous opportunities for the politicians to bribe companies into locating in one location or another. Yes, the word is bribe. There is no other word. Not incentive, not tax break, not subsidy: BRIBE.
Let us be clear, if the company offered the money to the politicians for special consideration, it would be illegal, because it would be a bribe. If a salesman offers money to a client to give his company the business, it is a BRIBE: something that serves to induce or influence. (Webster’s) The Demopublicans are offering bribes, with your money, and acting as if this is the reason we elect them.
Crony Capitalism is not something found in the North Carolina Constitution, or the US Constitution for that matter, nor is a description of government bribing business in either document. Yet this is where we are, and this type behavior is what is wrong with our country today.
Charlotte and Mecklenburg County are in debt because of similar behaviors. We are building railroads, school buildings (we have 10 closed ones now while still paying the bonds that built some of them), parks, convention centers, and basketball arenas that are either for corporations directly, in the case of the arenas, or indirectly as a perk for their employees. The issue is the same: Demopublicans are taking taxpayer money to bribe corporations in order to make themselves re-electable. Specifically, if the corporations don’t find a politician suitable, their employees won’t give the politician any money. Without money the politician can’t get elected, which means the politician who is suitable to business is the one who gets elected, or they get a new one. It gets worse.
There are two types of corporations: those on the take or ‘in the game’ and those not. What Crony Capitalism does is plays favorites. (Can you spell Solyndra-Obama?) Those with access and the ability to influence politicians, to play the game according to the rules, get favors: bribes, subsidies, tax breaks, and tax credits. Those who don’t play the game are forced to compete against those who do. This is as un-level a playing field as one can get. This is diametrically opposite of what we should expect from government. What this produces is not even a competition. It’s similar to an NFL team playing a high school team.
This is what government has brought us and is one of the reasons our economy is in such sad shape. It is indicative of a political class that believes it can improve things by picking one company over another. The history of this type behavior is a deterioration of the economy, which we are in the midst of. Paying off Continental, bribing them, to bring their plant to wherever will do nothing to repair the basic problem and will do much to exacerbate it in the future. Who is next for the bribe?
It is absolutely wrong. But politicians, being related to lawyers, think if it is legal, it is moral.
It is not. If politicians want to fix the economy, they should quit trying to help and take the last 30 years of regulations and bribes with them.
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