Crony capitalism is America’s disease and the real problem with the modern perception of capitalism that most of the left likes to use against capitalism itself, without discerning between what voluntary trade and free markets can accomplish and what crony capitalism actually is all about.
It’s very easy to find perfect examples of crony capitalism in the age of President Barack Obama.
One of these perfect examples has been relying on taxpayer money to subsidize financial incentives destined to foreign companies that purchase U.S. exports: the Export-Import Bank.
The agency’s charter expires in 2014, making now the perfect time for opponents of crony capitalism to raise their objections to the agency’s upcoming congressional renewal. Heritage’s The Foundry talked to Rep. Jeb Hensarling (R-TX) about the Export-Import Bank and why he thinks that the federal export-subsidy agency should not be allowed to stay in business.
The agency, which was referred to as “cronyism concentrate” by National Review, has stayed in business because of an outdated system that relies on picking winners and losers, a practice that is unacceptable in a healthy, competitive market.
U.S. manufacturers are perfectly capable to succeed overseas without having to rely on incentives granted as gifts to foreigners straight from the pockets of Americans across the country. The idea that the Ex-Im bank is a necessity is dated at best, and a burden that we can no longer carry.
According to Rep. Hensarling, Ex-Im is “in many respects, the face of cronyism.”
“It is where government bureaucrats come in and start to allocate credit and pick winners and losers. You either believe that free enterprise is a good thing or you don’t believe free enterprise is a good thing.”
Congressman Jeb Hensarling also stated that the best way to boost the job market is not to pick winners and losers in the export game, but actually to bring down trade barriers that keep companies from expanding or even being created, thus expanding job creation.
During the interview, he also criticized ObamaCare by claiming that by repealing the Affordable Care Act and freezing the government’s regulatory powers would boost competition among businesses in America, lowering overall costs and offering more quality and variety to consumers.
Rep. Henrarling is not the only lawmaker fighting Ex-Im: Sen. Mike Lee (R-UT) has also been a vocal opponent of the agency’s procedures, which are fully rooted in cronyism.