Definition: it is the flow of government funds to private industry based not on merit or efficiency but rather on influence within the gov’t itself. For the cases below, this does appear to be the case, but somehow I doubt that he has the chutzpah to execute it. I think the truth is much uglier: Team Obama is in over its head (i.e. shades of Jimmy Carter).
SOLYNDRA
This company went down, taking $535 million in taxpayer dough with it. There are some rumors about inside influence. However, someone on the inside was releasing private email, and it seems that the Presidential visit had already been set, and there was pressure to approve the DOE loan before his big PR visit.
THE BUFFETT TAX
Then there is the odd symbiosis between Mr. O and the Oracle of Omaha. OO was an adviser to the Obama presidential campaign, plus he has scheduled a fundraiser for same upcoming. OO says that he is rich and not being taxed enough, and Team Obama comes up with something being dubbed ‘the Buffett Tax’. Here, it is hard to see how OO benefits. Besides: OO is widely regarded as financial genius, but I am beginning to wonder: does he understand the income tax was designed as a tax specifically on labor, not capital? It has nothing to do with fairness or rich vs. poor. That is why taxes in investment income are much lower, and also because capital is taxed internally in the financial system before it reaches the taxpayer.
IMMELT AND GE
He was appointed by Team Obama to tackle the problem of jobs migrating overseas. He is viewed as a poor candidate, since his company is doing this international job movement as fast as any multinational company; perhaps a campaign link or that GE jumped into Team Obama’s green energy bandwagon early and often? Maybe, but GE is a unique company: it is a wide ranging company that has its fingers in many, many pies, and does bring a unique perspective on the international job market.
So, is Team Obama guilty of crony capitalism? Perhaps, but I am not convinced. I am sure that it is one of the most incompetent Presidential administrations in history.
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