GOP and the Dems both Embrace Crony Capitalism

It is tempting for some to characterize the issue of crony capitalism as a partisan issue; it is not. Both clubs in Washington engage in it with glee. The reauthorization and expansion of the Export-Import Bank, also known as Boeing’s bank, is a prime example of this. In the attached article Tim Carney at the Washington Examiner explains that though many within the GOP base embrace free enterprise, a significant majority of members in the House apparently do not.

(From the Washington Examiner)

“Here’s the state of Republican economic policy today: A $35 billion federal loan-guarantee program for wind and solar companies is scandalous ‘crony capitalism’ that must be shut down and investigated.

But a $100 billion federal loan guarantee program mostly benefiting Boeing and Caterpillar should be expanded by 40 percent.

The bad subsidies, according to Republican teaching, are President Obama’s green energy initiatives, like the stimulus-created loan guarantee program that funded failed solar panel maker Solyndra.

The good subsidies, for Republicans, come from a federal agency called the Export-Import Bank, whose loans and loan guarantees subsidize U.S. exporters, with two-thirds of the loan guarantee dollars backing Boeing sales.”

Click here for the story.