Corporate welfare alive and well in the Obama administration
Who is happiest with President Obama’s nominees to head the EPA (Gina McCarthy) and the Energy Department (Ernest Moniz)? As Tim Carney explains, it’s neither environmentalists on the left nor free marketeers on the right, but the lobby groups that seek as many beneficial — for their corporate members — government subsidies and mandates as possible:
Although Obama regularly talks about ending “corporate welfare,” battling the “special interests” and creating a “level playing field,” he has steadfastly supported government favors for the ethanol industry — favors that increase costs for drivers, taxpayers, ranchers and grocery shoppers.
The Solar Energy Industries Association also applauded Obama’s nomination of McCarthy and Moniz. Solar companies profit from a production tax credit that Obama recently fought to extend, and a plethora of stimulus subsidies such as loan guarantees, tax credits and grants.
Check who’s investing big in solar energy, and you’ll notice a lot of politically connected names, such as Al Gore, Warren Buffett and Vinod Khosla.
And this is not a new thing for the president, Carney notes:
Obama never has been anti-business. His stimulus amounted to billions in corporate subsidies. His health care bill is a boon to hospitals and drug-makers. He was the most important supporter of Bush’s bailout outside the Bush administration in 2008.
Carney’s right. Obama isn’t anti-business. He’s anti-markets.
As I have written before, both liberals and conservatives need to recognize the nexus of Big Government and Big Business is more problematic than either one on its own. Democrats and Republicans both have a bad tendency to scold the industries they don’t like while protecting the ones they do.
Big Green Energy is one industry the Democrats definitely like. As Carney puts it, the idea is: “Politicians and bureaucrats tell business what to do, and business gets to make a profit doing it.”
But only the biggest businesses benefit from that arrangement: Only they can afford the lobbyists who help shape the legislation and absorb the costs the legislation foists on them. The upside for them is they become further entrenched in their markets, keeping smaller competitors at bay and, in some cases, virtually guaranteeing themselves profits. That builds up a lot of economic sclerosis over time, and it’s one reason America has lost some of its competitive edge.
The good news is that our economy is still dynamic enough — as opposed to, say, many of those in continental Europe — to overcome that sclerosis if we start to unwind that Big Government/Big Business relationship. Obama’s nominees for EPA and Energy suggest that won’t be happening in the next four years. The GOP would do well to spend that time changing its own M.O.
– By Kyle Wingfield
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615 comments Add your comment
getalife
March 8th, 2013
2:32 pm
You got your cuts so shut up.
It is funny watching the gop trying to squirm their way out of them.
HDB
March 8th, 2013
2:33 pm
Class of ‘98
March 8th, 2013
1:59 pm
“Even child labor laws are hypothetically unnecessary, if our consumer culture were more discerning and educated. Don’t like a company that employs children? Boycott. Don’t buy from them, and tell your friends. The market will correct it.”
Actually, BECAUSE the consumer has become more discerning, the consumer addressed the government to enforce child-labor laws so that the market could better function for ALL and eliminate child exploitation. Total laissez-faire economics doesn’t work because the consumer would be at the mercy of a manufacturer with limited access for redress!! Note the lead paint in toys made in China that wouldn’t have been caught save for the regulations that banned it. Regulations ensure that the marketplace work for all, not just the few!
There ARE regulations that can be considered onerous on business, but the preponderance of regulations exist to protect both the marketplace and the consumer!! In many situations, it’s the consumer reaction that led to the regulation…………
MiltonMan
March 8th, 2013
2:36 pm
How dare you Kyle. Didn’t you know that the APS-generated lib moonbats around here only believe that corporate welfare is a con game?
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
2:39 pm
“Heck, I don’t even care if you answer my rhetorical question, I just want to see if you can come up with a intelligent response.”
Class of ‘98, you’ll find getalife is a bit light on those two things.
Never answers a question directed to him.
And never provides an intelligent response.
However, to you earlier point, I’m not sure if you were doubling down on the scenario about tax breaks for oil and tax increases. We’re you claiming the elimination of the tax break was, in turn, the huge tax increase? Or were you adding in another tax increase on top of the elimination of the tax breaks.
I for one have zero problem with eliminating the tax breaks.
getalife
March 8th, 2013
2:39 pm
Our President is investing in green energy.
That is a campaign promise that he is actually doing.
Deal with it hypocrites and self self defeatists.
MiltonMan
March 8th, 2013
2:39 pm
“Unemployment rate drops to lowest in four years
Thank you Obama !!!!”
Good grief yet another lib who thinks the president acutally has such power to control gas prices, stock markets, unemployment, etc. And we are shocked when 80% of NYC high school graduates cannot even read properly???
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
2:40 pm
“You got your cuts so shut up.
No, we didn’t, so no, we won’t.
MiltonMan
March 8th, 2013
2:40 pm
“Our President is investing in green energy.
That is a campaign promise that he is actually doing.
Deal with it hypocrites and self self defeatists.”
…he also promised to close Gitmo & cut the deficit in half. When are we going to see that happen?
Class of '98
March 8th, 2013
2:41 pm
“Total laissez-faire economics doesn’t work because the consumer would be at the mercy of a manufacturer with limited access for redress!! Note the lead paint in toys made in China that wouldn’t have been caught save for the regulations that banned it.”
The redress of the consumer is not to buy from that manufacturer. Starve them of revenue, they will go out of business. Buy from a competitor. The lead paint in Chinese toys is a good argument, but the redress in that circumstance is for the consumer not to buy toys made in China. Ever. Again, consumers should educate themselves before spending money, and not rely on the government to do it for them.
And by the way, did regulation stop the Chinese from exporting toys with lead paint? Regulation didn’t catch it, sick children did.
Government regulation is necessary because most people are stupid and lazy. The problem is when those stupid and lazy people RELY on government regulation to make everything perfect. Government, despite what liberals think, is far from omniscient and perfect.
MiltonMan
March 8th, 2013
2:41 pm
“You got your cuts so shut up.
It is funny watching the gop trying to squirm their way out of them.”
Actually the pres is the one squirming – remember all the doomsday he was talking about??? Good to see him be so proactive by shutting down White House tours.
HDB
March 8th, 2013
2:43 pm
Class of ‘98
March 8th, 2013
2:29 pm
May I ask you this: IF you believe that the oil companies require their tax subsidies for exploration, then why are we paying the oil companies for sitting on leases that they are not using…as they simultaneously whine about not being able to get additional land leases? Shouldn’t they use the leases they have and explore there FIRST before requesting for additional leases??
IMHO, we should CUT oil subsidies until they decide to use the leases they already have……
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
2:44 pm
“Actually, BECAUSE the consumer has become more discerning, the consumer addressed the government to enforce child-labor laws so that the market could better function for ALL and eliminate child exploitation.”
really, HDB? Would YOU buy from a company you knew to have sweatshops with kids being forced to work for pennies? Why do you think others would?
Total laissez-faire economics doesn’t work because the consumer would be at the mercy of a manufacturer with limited access for redress!!”
Ahhh, the word “access”. The new watchword for libs when they can’t get government to provide something to them.
“Note the lead paint in toys made in China that wouldn’t have been caught save for the regulations that banned it.”
Note that many don’t buy from China even before knowing how inferior or dangerous their products are.
getalife
March 8th, 2013
2:45 pm
The cuts are for ten years so predicting the consequences is guessing.
gramm invented sequestration and they used it before.
The gop weaseled out of those cuts like they are trying to do now.
Big oil and bank welfare are low hanging fruit your party failed to cut.
Thank you President Obama for investing in green energy.
We need a green energy bubble for jobs.
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
2:46 pm
“Our President is investing in green energy.”
Not so much anymore!
Class of '98
March 8th, 2013
2:47 pm
“IMHO, we should CUT oil subsidies until they decide to use the leases they already have……”
HBD, that’s a sentence with which I could not agree more.
I am 100% against any and all government subsidies. It warps the market. FWIW, I do believe some regulation is necessary, and agree with child labor laws. But I also recognize that 99% of the time government meddling and regulation exacerbate problems they were intended to cure.
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
2:47 pm
“We need a green energy bubble for jobs.”
Yeah, ’cause artificially-generated bubbles never burst . . .
Hillbilly D
March 8th, 2013
2:48 pm
it’s neither environmentalists on the left nor free marketeers on the right, but the lobby groups that seek as many beneficial — for their corporate members — government subsidies and mandates as possible:
That’s got to be right up there with “the sun will rise in the east”. Anybody that thinks any of these politicians, on either side, give a damn about anything but themselves is naive, at best. Government isn’t there to serve us; it’s there to serve them and they play everybody like a cheap violin, daily.
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
2:48 pm
Everybody laughs at the joke we have for a “leader -”
In a Facebook post on Thursday, Fox News anchor Eric Bolling announced that he will offer to personally pay the costs to keep the tours at 1600 Pennsylvania Avenue open for a week.
During Thursday evening’s episode of “The Five,” Bolling elaborated. “I will absolutely write the check if they open the doors next week.”
getalife
March 8th, 2013
2:51 pm
President Clinton wanted investors to invest in green energy instead of the gse’s housing scam.
President Clinton is right and so is President Obama.
getalife
March 8th, 2013
2:52 pm
fox news is a joke.
getalife
March 8th, 2013
2:54 pm
I should add so was President Carter.
Class of '98
March 8th, 2013
2:55 pm
Yes, President Carter was a joke.
getalife
March 8th, 2013
2:57 pm
I think President Obama will continue to serve like Presidents Clinton and Carter.
What are w and cheney doing?
HDB
March 8th, 2013
2:58 pm
Class of ‘98
March 8th, 2013
2:41 pm
“The redress of the consumer is not to buy from that manufacturer. Starve them of revenue, they will go out of business. Buy from a competitor. The lead paint in Chinese toys is a good argument, but the redress in that circumstance is for the consumer not to buy toys made in China.”
The problem then lies in that ALL of the toy manufacturers (Mattel, Hasbro, Fisher-Price….) make their toys in China; in order to hold the manufacturer accountable to the prevailing business standard. regulations are created to protect BOTH the consumer and the market.
” Regulation didn’t catch it, sick children did.” – Because of the sick children, we discovered that the Chinese-made toys violated the business regulation of no lead-based paint, redress initiated, penalties invoked, and corrective actions taken!!
“Government regulation is necessary because most people are stupid and lazy.” I don’t think it’s that extreme; government regulation is necessary because an INDIVIDUAL has limited force of redress against a corporation whereas the FORCE of the government is stronger and more effective.
” Government, despite what liberals think, is far from omniscient and perfect.” Many liberals (along with me) do NOT think that government is omniscient or perfect…..far from it….but what entity is best suited to protect the MASSES of individuals in a LEGAL atmosphere….without anarchy???
getalife
March 8th, 2013
2:58 pm
What is willard romney doing?
Class of '98
March 8th, 2013
2:59 pm
W fights AIDS in Africa.
http://articles.washingtonpost.com/2012-07-26/opinions/35487798_1_african-countries-pepfar-antiretroviral-treatment
You really are kind of dumb, aren’t you?
getalife
March 8th, 2013
3:00 pm
You cons do not even want to cut the corporate welfare of tax loop holes.
You do not want cuts.
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
3:00 pm
Cheney’s waiting for obozo to say something ludicrous like “leading from behind” so that he can star in his a$$.
Dick loves our country.
bluecoat
March 8th, 2013
3:00 pm
Biggest gov.blunder,not solyndra.. Ethanol,Ethanol,Ethanol.
getalife
March 8th, 2013
3:00 pm
What else class?
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
3:02 pm
Romney is laughing along with the rest of us. Take your party’s credibility and flush it down the toilet. Run pop stars and bubbleheads for serious Senate seat that you can convert to late night comedy. It’s a gas in the dummycrat party.
bluecoat
March 8th, 2013
3:04 pm
And never put any resin on the bow.
Class of '98
March 8th, 2013
3:04 pm
“an INDIVIDUAL has limited force of redress against a corporation whereas the FORCE of the government is stronger and more effective.”
I don’t agree with that. Government bureaucracies quickly become wasteful, and worse, corrupt. It may be stronger, but more effective is up for debate.
I don’t want to debate the housing meltdown again, but the bubble which ultimately burst was caused in large part by over-regulation, i.e. Freddie and Fannie backing and buying private loans. Politicians of both parties pushed for more Americans being qualified for home loans. This is a prime example of government meddling causing a bigger problem than if they had just stayed out of it to start with.
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
3:04 pm
W does need to work to restore his legacy in the eyes of the American people, obozo is taking care of that just fine. obozo makes Bush look like Aristotle.
getalife
March 8th, 2013
3:04 pm
The dick that said deficits don’t matter?
The dick that lied about Iraq?
The dick that gave the banks and military complex a blank check to rob our treasury?
The dick that exploded our deficit?
That dick aesop?
Class of '98
March 8th, 2013
3:06 pm
What else what, getalife? I made a mistake in asking you for an intelligent response to my questions earlier. I actually like a good debate with intelligent people who have well thought-out opinions, even if they differ from mine.
I realize now you aren’t the kind of person I’m looking for. You just spout insults and mindless barbs that have nothing to do with anything.
I have no use for you.
Cheesy Grits is gone but not forgotten
March 8th, 2013
3:08 pm
Romney is laughing along with the rest of us
I dont think you get out much.
Those people you think your laughing with… are laughing at you.
getalife
March 8th, 2013
3:08 pm
There is no debate with liars class.
I have no use in debating liars.
HDB
March 8th, 2013
3:09 pm
Tiberius – pulling the tail of the left AND right when needed
March 8th, 2013
2:44 pm
“Ahhh, the word “access”. The new watchword for libs when they can’t get government to provide something to them.”
Not in this case, Tibbi…..note the power of the individual vs. the power of the corporation!! If there is not an entity to equalize things, the corporations would be running roughshod over the consumer. Government regulation puts the force of the government into play, thereby creating a level of consumer protection against corporate largesses…and equalizing access to redress through the government. You can’t say that the courts are the equalizer because an INDIVIDUAL consumer does not have the comparable legal and/or financial power compared to a corporation. That’s my point…..
getalife
March 8th, 2013
3:10 pm
romney went back to his job of robbing companies where he belongs.
sailfish
March 8th, 2013
3:10 pm
Halliburton, blackwater anyone?
Cheesy Grits is gone but not forgotten
March 8th, 2013
3:12 pm
Republicans love to spend spend spend.
Most of this countries debt was run up during Republican administrations.
Federal spending has actually gone down under Obama but then nuts here wont let facts get in the way.
Heck Reagan tripled the debt during his eight years with irresponsible tax cuts.
Its taken 5 years to recover from the Bush recession but it looks like we are finally doing it.
Its a credit to Obama and the American people to get the thing turned around in 5 years.
Considering the economy was losing 700,000 jobs a month and unemployment was skyrocketing when Obama took office.
History will be kind to Obama. Bush not so much.
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
3:13 pm
Must be a different Dick, gitmo.
Class of '98
March 8th, 2013
3:13 pm
“I have no use in debating liars.”
You’re not debating me at all, moron. You spewing about W and Willard and whatever else seems to float into your polluted stream of consciousness.
I’m guessing you are about 21, maybe 22? Still live at home with mom and dad? You religiously watch Maher and Colbert and let them think for you? Am I getting warm? I bet I am.
Like I said, I have no use for you.
Aesop's Fables and other Lib Economic Theories
March 8th, 2013
3:14 pm
Federal spending has actually gone down under Obama but then nuts here wont let facts get in the way.
See? They’re a laugh a minute.
sailfish
March 8th, 2013
3:14 pm
“W does need to work to restore his legacy in the eyes of the American people, obozo is taking care of that just fine. obozo makes Bush look like Aristotle”
Only in yours and about a handful of other peoples minds. Bush is still champion of the worst, he set the bar pretty high.
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
3:17 pm
“note the power of the individual vs. the power of the corporation!!”
The difference between you and me, HDB, is that’s you’ll never realize that the power of the individual is the ultimate power.
Tiberius - pulling the tail of the left AND right when needed
March 8th, 2013
3:19 pm
Cheesy does his contractual spouting of DNC talking points @ 3:12. . . . .
Cheesy Grits is gone but not forgotten
March 8th, 2013
3:20 pm
See? They’re a laugh a minute.
But its true. You would have to take the blinders off to see it which you wont do.
Fox News and the Cons tell you it is so. And after that you never question it.
Republicans like to say we have a spending problem, not a taxing problem, but the evidence doesn’t back that up. Total government spending didn’t go up much during the Clinton era, and it’s actually declined during the Obama era. In the last two decades, it’s only gone up significantly during the Bush era, the same era in which taxes were cut dramatically.
What we have isn’t a spending problem. That’s under control. What we have is a problem with Republicans not wanting to pay the bills they themselves were largely responsible for running up.
Finn McCool (the system isn't broken; it's fixed)
March 8th, 2013
3:21 pm
Mittens Romney can give the White House tours. He still unemployed?
mwuahhahahahahahahaha