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Democrats : Party of Big Government and Big Business All Nice and Cozy In Bed Together

Jonah Goldberg gets it right in this analysis.

The notion that big business is "right wing" has always been more sloppy agitprop than serious analysis. It's true that historically, big business is against socialism and communism -- and understandably so. Socialism and communism were once close to synonymous with expropriation of wealth and the nationalization of industry. What businessman or industrialist wouldn't be against that?

But many of those same industrialists saw nothing wrong with cutting deals with statist regimes. For example, the Swope Plan, put forward by Gerard Swope, president of General Electric, laid out the infrastructure for much of the early New Deal.

Yet the debate is always framed as if the choice is between "government intervention" on the one hand and free-market capitalism on the other. From 30,000 feet, that division is fine with me. My objection is the glib and easy association of big business with the free-market guys (Milton Friedman was no champion of public-private partnerships and industrial policy).

This identification allows self-described progressive Democrats to run against big business when they are in fact in bed with the fat cats.

For instance, the standard line from the Democrats is that the plutocrats and corporate mustache-twirlers oppose healthcare reform because, in President Obama's words, they "profit financially or politically from the status quo." That sounds reasonable, and in some cases it is reasonable. But it makes it sound as if Obama is bravely battling "malefactors of great wealth."

But that's not really how it works, as Timothy Carney documents in his powerful new book, "Obamanomics."
In 2008, Obama raked in more donations from the health sector than John McCain and the rest of the Republican field combined. Drug makers gave Obama $3.58 for every dollar they gave McCain. Pfizer gave to Obama at a 4-1 rate, as did the hospital and nursing home industries. In 2008, the insurance industry gave more money to House Democrats than House Republicans. HMOs give to Democrats over Republicans by a margin of 60 to 40.
....

This pattern is hardly unique to healthcare. The U.S. Climate Action Partnership, led by GE, includes many other Fortune 500 companies, including Goldman Sachs -- the company that has profited mightily from Obama's brand of hope and change.
CAP is an aggressive supporter of the Democrats' climate change scheme. Why? Because GE and company stand to make billions from carbon pricing, thanks largely to investments in technologies that cannot survive in a free market without massive subsidies from Uncle Sam. GE chief Jeffrey Immelt cheerleads big government as "an industry policy champion, a financier and a key partner."

Going back to U.S. Steel and the railroads, the story of big business in America is often as not the story of fat cats rigging the system. And the story of progressivism is the same story. The New Deal codes were mostly written by big business to squeeze out smaller competitors. The progressives fought for these reforms on the grounds that it's easier to steer a few giant oxen than a thousand cats.

But healthcare is the most troubling example of the trend. Washington Post columnist Robert Samuelson notes that while everyone has been debating the government takeover of healthcare, what's really transpired is healthcare's takeover of government -- thanks to what he calls the "medical industrial complex." Already 1 in 4 federal outlays are for healthcare; government pays, directly or indirectly, for half of all healthcare costs; and the entire industry is heavily regulated. Obama's answer to this state of affairs is more -- much more -- of the same, on the phantasmagorial grounds that it will cut costs.

My biggest objection is not to what isn't true about the claim that the right is the handmaiden to big business, it's to what is true.
Too many Republicans think being pro-business is the same as being pro-market. They defend the status quo against bad reforms and think they've defended economic freedom. The status quo stinks. And the sooner Republicans learn that, the sooner they'll deserve to win again.


Well said by Goldberg, especially about misguided Republicans who think supporting any business, especially big, is akin to support for free market capitalism.

But even moreso, enough of the tired lies of self-described "progressives" that they stand against big business, when the massive federal government they always seek to empower is the lifeblood of the crony corporatism that we all saw run to DC for bailouts and a whole panoply of assorted corporate welfare schemes.

There is damn good reason corporate lobbyists have never been fatter or sassier than when the so-called "progressives" are in charge. The social policy happy-talk smoke screens that these "progressives" peddle are but fancy distraction from the real goings-on as corporate interests fund and control "progressive" politicians who happily wield and expand federal power.

You want corporate influence in government to diminish? The ONLY way is to diminish the influence and power of government itself.

As I have said countless times to the stooges who actually buy the cock-and-bull that their leftist leaders in DC actually care about the interests of working Americans :

Be careful the big government you wish for. It just might get you.

Comments

Anonymous said…
Excuse me there Mr. Tyler. K Street lobbyists were never fatter than under the Bush regime. They own the republican party. The republicans are the party of big business, corporate elites if you will. They represent 2% of the fattest, richest corporate cats in the country, while using the dead head Palin Dumbed Down to support these rich pigs.

Obama and the demorats...no better. Obama said in during the campaign "there would be no lobbyists in his administration", while his cabinent is filled with them.

Lies and Liars come from both parties. K Street is the "Bawdy House" of Washington DC. We do not have a consitution, in fact the founding fathers signed it, but it was never ratified by the States. A man named Charles Eisly sued in Commonwealth Court in Phila and won the case against corporate USA.

Therefore, we are free people. Free to arrest everyone in city, county and state government. They have violated their oaths of office, both parties have bankrupted the nation, committed imperialist wars of aggression and brought us to our knees. There is a new party called the Secured Party. Check it out.
Anonymous said…
Anonymous is naive and wrong. The analysis shows that Big Business was giving twice as much to Democrats than to Republicans. That said I should note that Goldberg's analysis seems to come straight from Tim Carney's excellent book Obamanomics available from Laissez Faire.

http://www.lfb.org/product_info.php?products_id=365

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