www.mozilla.com Weather Central
Voices
Headlines

Defense against demagogues -1/30/2015, 9:44 AM

Kansas is at risk -1/30/2015, 9:44 AM

Football injuries -1/30/2015, 9:44 AM

A note on primitivism -1/29/2015, 9:55 AM

Owning ideas -1/29/2015, 9:55 AM

There's more -1/29/2015, 9:55 AM

Kansas' birthday -1/29/2015, 9:55 AM

Back to the future, locked and loaded -1/28/2015, 9:29 AM

Compromise -- make it happen -1/28/2015, 9:29 AM

Faith v. facts -1/28/2015, 9:29 AM

Counting on Les -1/27/2015, 9:22 AM

Building bills in the Legislature -1/27/2015, 9:22 AM

Tale of the tree -1/27/2015, 9:22 AM

Seismic activity -1/27/2015, 9:22 AM

Where are the good guys? -1/27/2015, 9:21 AM

Brownback's budget -1/26/2015, 9:59 AM

Committee meetings begin -1/26/2015, 9:50 AM

Excitement starts at Capitol -1/26/2015, 9:50 AM

What's happening with oil prices? -1/26/2015, 9:50 AM

Synthetic biology, brave new world -1/26/2015, 9:50 AM

Today's fierce urgency is voter mobilization -1/25/2015, 5:02 PM

Duke, Muslims and politics of intimidation -1/25/2015, 5:02 PM

Right to hunt -1/25/2015, 5:02 PM

Pipeline: Foreign profits, American risk -1/23/2015, 7:47 AM

Social Darwinist 'Christianity' -- Chapter 3 -1/23/2015, 7:47 AM

Kiwanis generosity -1/23/2015, 7:47 AM

The state economy -1/22/2015, 10:23 AM

Restate of the union -1/22/2015, 10:23 AM

France needs our First Amendment -1/22/2015, 10:23 AM

Repurposing Washington -1/20/2015, 9:31 AM

March for Life -1/20/2015, 9:31 AM

Brownback, the budget and schools -1/20/2015, 9:31 AM

Sensible checks are no assault on gun rights -1/19/2015, 9:50 AM

Jeb Bush chooses expedience on marriage issue -1/19/2015, 9:50 AM

The State of the State Address and the legislative session -1/19/2015, 8:47 AM

Spending's not the culprit in budget woes -1/18/2015, 3:32 PM

Pilgrim's paradise -1/18/2015, 3:32 PM

Spring elections -1/18/2015, 3:23 PM

Kobach is back -1/16/2015, 3:04 PM

More with Les -1/16/2015, 10:03 AM

Understanding Hooper -1/16/2015, 10:02 AM

Basic economics -1/16/2015, 10:01 AM

Female governance -1/15/2015, 9:37 AM

2015 energy policy -- a unique opportunity -1/15/2015, 9:37 AM

The better option -1/15/2015, 9:36 AM

'Wall Street' a waste -1/14/2015, 2:50 PM

Trade already -1/14/2015, 2:49 PM

No media bias? -1/14/2015, 2:48 PM

Retirement funds -1/14/2015, 2:47 PM

Redefining public education in Kansas -1/13/2015, 10:06 AM

What the future holds -1/13/2015, 10:06 AM

Efficient education -1/13/2015, 10:06 AM

Terrorists usher in the 'End of Satire' -1/12/2015, 9:14 AM

Sexuality, lame logic, substandard science -1/12/2015, 9:14 AM

A tragic family story -1/11/2015, 12:11 PM

For freedom, LGBT rights, a year of decision -1/11/2015, 12:11 PM

Roberts' promotion -1/11/2015, 12:11 PM

FHSU campaign -1/11/2015, 12:11 PM

Fairness in U.S. -1/9/2015, 3:05 PM

Liberals' use of black people -- Part II -1/9/2015, 9:09 AM

Social Darwinist 'Christians' -- Chapter 2 -1/9/2015, 9:09 AM

Taxing situation -1/9/2015, 9:09 AM

Trust: Society depends on it -1/8/2015, 9:55 AM

Education schools lack a paradigm -1/8/2015, 9:55 AM

Congress convenes -1/7/2015, 10:07 AM

Simple way to fix gridlock: change committees -1/7/2015, 10:06 AM

Kansas is your customer -1/7/2015, 10:06 AM

Large budget shortfalls await solution -1/6/2015, 10:06 AM

The state and funding K-12 education -1/6/2015, 10:06 AM

Tree removal -1/6/2015, 10:06 AM

Republicans won -- now what? -1/5/2015, 9:13 AM

Social Darwinist religion, Chapter 1 -1/5/2015, 9:13 AM

Liberals' use of black people -1/2/2015, 9:53 AM

Ignorance abounds -1/2/2015, 9:53 AM

Superbug dilemma -1/2/2015, 9:53 AM

Thanks North Korea -12/31/2014, 1:26 PM

Sony gets the last laugh -12/31/2014, 1:26 PM

Free speech -12/31/2014, 1:16 PM

New Year's resolutions -- sort of -12/31/2014, 9:22 AM

A flat-footed backflip for Wall Street -12/31/2014, 9:22 AM

Dim the lights -12/31/2014, 9:22 AM

Some near-sure bets for the new year -12/31/2014, 9:21 AM

Adios, Rick Perry -12/30/2014, 8:20 AM

Budget strife means high-anxiety session -12/30/2014, 8:20 AM

Time for caution -12/30/2014, 8:20 AM

-12/29/2014, 10:01 AM

Court's raw deal -12/29/2014, 10:01 AM

Chris Christie's pork barrel politics -12/29/2014, 10:00 AM

A Festivus Miracle -12/27/2014, 4:18 PM

Faith, not politics, keeps Christ in Christmas -12/27/2014, 4:18 PM

EPA rule falls short -12/27/2014, 4:18 PM

2014: The year in Kansas higher education -12/26/2014, 9:39 AM

Methane from cattle -12/26/2014, 9:39 AM

Black progression and retrogression -12/26/2014, 9:38 AM

Up-Lyft-ing Christmas tale -12/25/2014, 1:22 PM

Terrorism on soft targets -12/25/2014, 1:22 PM

Story of Christmas -12/25/2014, 1:22 PM

Fabricated column -12/24/2014, 8:21 AM

The Christmas spirit dwells in us all -12/24/2014, 8:21 AM

Celebrating life -12/24/2014, 8:21 AM

myTown Calendar

SPOTLIGHT
[var top_story_head]

'Crapitalism'

Published on -7/3/2014, 7:11 AM

Printer-friendly version
E-Mail This Story

There's capitalism, and then there's "crapitalism" -- crony capitalism.

Capitalism is great because it lets entrepreneurs raise money so they can scale up and get their products and services to more people. If there is free competition, innovators with the best ideas raise the most money, and the best and cheapest products spread far and wide.

But it's crapitalism when politicians give your tax money and other special privileges to businesses that are "most deserving of help." Often those businesses turn out to be run by politicians' cronies.

Many government agencies feed this crony capitalism. When there is scandal, such as when the Energy Department lost $500 million on Solyndra, we hear about it. But often we don't. You probably didn't know about the department's other fat losses on businesses such as Solar One, the Triad ethanol plant, FutureGen, the Clinch River Breeder Reactor and so on.

Even the Small Business Administration is an embarrassment. They loaned $1 million to a Lamborghini dealership and $3 million to a Rolex dealer. Is this where your tax money should go? Voters assume government handouts go to people who need help. But they usually don't. Most government handouts go to the middle class and the rich.

Government has no business handing out loan guarantees to companies. Corporations can pay their own way. The Agriculture Department's Market Access Program gives millions of dollars to affluent groups like the Pet Food Institute, the Wine Institute, Sunkist and Welch Foods. In return, politicians get campaign contributions. It's disgusting crapitalism.

The biggest funder of this crony capitalism is the Export-Import Bank. The bank says its "financial products enable exporters of all sizes to ... protect against the risks of international trade and export with confidence."

That sounds good, and it's why most politicians support it. But for the first time in my memory, there is pushback. Many Republicans want to stop this corporate welfare. The chairman of the House Committee on Financial Services, Jeb Hensarling, R-Texas, points out most of the government's export loans go to "Fortune 500 companies like G.E., like Boeing, who could easily finance these things themselves. ... The Export-Import Bank claims they create American jobs, but when the Export-Import Bank helps Boeing sell a jet to Air India, it hurts Delta Air Lines."

Right. When government picks winners, it pats itself on the back -- and gains crony friends in industry. But it creates losers at the same time.

"When Export-Import Bank helps G.E., and others build an oil refinery in Turkey, it hurts the domestic refining industry," Hensarling said. "For every job Export-Import creates in exports, they kill an American job domestically. It's not helping us."

But few of us bother to complain. Benefits of government spending go to a concentrated few -- who fight to keep the program going. When taxpayers and domestic businesses suffer because of resources transferred to the well-connected Ex-Im Bank-linked businesses, we each lose just a few bucks. We never will hire as many lobbyists to criticize the bank as the beneficiaries do to keep it going. Like every other government program, Ex-Im Bank creates a vocal constituency that never wants to see the program die.

And that time and energy spent lobbying is time companies might have devoted to improving their product or making their business more efficient. Gifts from government get companies to focus on lobbying instead of innovation. Government favoritism creates bad incentives.

Before he was president, Barack Obama agreed with me. He said, "I'm not a Democrat who believes that we can or should defend every government program just because it's there. There are some that don't work, like ... the Export-Import Bank that has become little more than a fund for corporate welfare."

Yes. Candidate Obama understood. But now, instead of getting rid of the Ex-Im Bank, he wants the bank to loan out even more of your money.

Does America need "export assistance," as well as "small business support," an "energy policy" and so on?

No. We already have a time-tested policy for deciding, without government interference, where resources should go. It's called the free market. It works much better than government does.

John Stossel is host of "Stossel"

on the Fox Business Network.

digg delicious facebook stumbleupon google Newsvine
More News and Photos

Associated Press Videos

AP Breaking News
AP Nation-World News

View this site in another language.

Kansas News