Crony Capitalism Definition: A description of capitalist society as being based on the close relationships between businessmen and the state. Instead of success being determined by a free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by the ruling government in the form of tax breaks, government grants and other incentives.
1. In a possibly career-killing move, General William Shelton, gave a statement to Congress that the White House pressured him to change his testimony in favor of a Democratic Donor, Lightsquared. The company’s majority owner is Philip Falcone. The company is developing a technology that will render military GPS useless, but what does the WH care? General Shelton should be inspiration to all of us for his bravery and integrity. Read here: The Daily Beast
2.&3. The Solyndra debacle continues as a report arises in which the author points out that due to the competition, Solyndra will probably fold by September, 2011. The WH altered the terms of the loan to Solyndra as they started to fold so the investors, Democratic donors, would be put ahead of the taxpayers. In the case of GM, the WH put the investors behind the unions, Democratic donors.
4. Politico carries an excellent exposition of how Obama’s rich friends trade fund raising activity for cash, jobs, and influence. The story is written by iWatch News.org, a website of the Center for Public Integrity, a Washington-based nonprofit focused on investigative journalism. Read here: More cronyism
This is how a nation becomes enslaved. Crony Capitalism is unlawful and against the free market principles which guide Capitalism. Crony Capitalism is not to be confused with Capitalism as in free markets, which we barely have now. If a President can steer business towards people who support him in all things, we will end up with a one party system.
The cronyism didn’t start with Obama, but it has grown stunningly in three years. Remember Obama’s words of three years ago, “On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics,” he said, “A new era of responsibility. More transparency. No more partisan posturing or political gimmicks.” As you recall these words, think of the closed door deals and the payoffs that were made to get Obamacare through, which, as it turns out, was merely a blueprint and never meant to be passed in its present form.
Recall Axelrod’s words, “We’ve been so used to gridlock in this town — partisan rancor that was so deep, special interest influence that was so extensive — that you couldn’t get anything done,” Axelrod says.
They obviously didn’t want to rid D.C. of special interests. Chicago politics at work.