Saturday, July 20, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, May 9, 2013
Ethics Should Hinder Lobbying and Crony Capitalism
By NCPA @ 12:38 PM :: 3177 Views :: Ethics

Ethics Should Hinder Lobbying and Crony Capitalism

NCPA May 9, 2013

Republicans are increasingly accusing President Obama of engaging in crony capitalism. They point to green energy handouts and industry bailouts as examples of how Obama shirks free markets and allows private companies to engage in cronyism to grow their profits. Conservatives must continue to push for more separation between corporate interests and public governance, says Timothy Carney, senior political columnist at the Washington Examiner.

  • Economist Milton Friedman once said that the social responsibility of business is to increase its profits, a belief that many free-market proponents and corporations agree with.
  • However, libertarians must declare that some means of pursuing profits are immoral and promote crony capitalism and should thus be deemed unacceptable.

Since Obama took office, corporate-government collusion has been rampant. Among the many examples are the 2005 and 2007 energy bills, which required drivers to buy ethanol; the 2008 bailouts for the financial and auto industries; the 2009 smoking regulatory act basically written by Phillip Morris; and the saving of the Export-Import Bank after extensive lobbying by Boeing, a company that receives many subsidies from the bank.

  • In recent years, corporations have become increasingly successful at lobbying for more spending and stricter trade regulations despite efforts to reveal the biggest corporations' actions.
  • For the companies that embrace big government to pad their profits, often the most successful way of shedding light on the situation is to shame them into backing off.
  • Another way to discourage the cozy relationship between big business and government is to remind the companies that those who seek favors from the government usually end up incurring the costs of getting stabbed in the back -- like tobacco or insurance companies have experienced in the past.

One of the most conscientious ways for consumers to affect this process is to vote with their dollars by supporting companies that prioritize ethical stands over absolute profit-making.

  • The reality, as investments in the green energy industry have proven, is that the government is terrible at picking winners and losers and only the free market can allocate resources efficiently.
  • One of the primary problems is lobbying, which is not bad in and of itself, but is used too often to create new subsidies and protective regulations that benefit few at the expense of the free market as a whole.

Source: Timothy Carney, "The Case against Cronies: Libertarians Must Stand Up to Corporate Greed," The Atlantic, April 30, 2013.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii