Saturday, December 3, 2016

CRONY CAPITALISM. IT'S NOT JUST FOR DEMOCRATS ANYMORE. Jonah Goldberg looked at the significance of the Carrier deal
And while the politics of this are great for the incoming Trump administration, they are absolutely terrible for free-market conservatives. The former president of AEI and a veteran of the Reagan administration, Christopher DeMuth, used to argue that perhaps the most important thing Ronald Reagan did was fire the air traffic controllers. In isolation, it was not that big a deal. But the message it sent was hugely important at a time when Eurosclerosis was spreading in America. Reagan let it be known that the public-sector unions no longer had the whip hand and the government couldn’t be extorted.

Trump’s Carrier intervention may just send an equally loud, but nearly opposite signal: that the White House is going to pick winners and losers, that it can be rolled, that industrial policy is back, that Trump cares more about seeming like a savior than sticking to clear and universal rules, and that there is now no major political party in America that rejects crony capitalism as a matter of principle. After all, don’t expect the GOP to recycle the language it used for the bailouts, Cash for Clunkers, Solyndra, etc., when it comes to Carrier. The RNC belongs to Trump.

I’m not going to get into the weeds explaining the bad economics here, but I suggest you look at my AEI colleague Ben Zycher’s critique — or National Review’s own editorial (or the Examiner’s). My point is that I shouldn’t have to!
This is from Friday’s New York Times:  
“I don’t want them moving out of the country without consequences,” Mr. Trump said, even if that means angering the free-market-oriented Republicans he beat in the primaries but will have to work with on Capitol Hill.

“The free market has been sorting it out and America’s been losing,” Mr. Pence added, as Mr. Trump interjected, “Every time, every time.” 

I don’t begrudge Trump his distrust and/or ignorance of the free market. He ran on dirigisme, protectionism, and a cult-of-personality approach to issues of public policy (“I alone can fix it!” and all that B.S.). He has spent his entire professional life working, bribing, and cajoling politicians for special deals — and he’s been honest about it.

But Mike Pence is supposed to be one of us. He’s supposed to be, if not the chief ideologist of the Trump administration, at least the mainstream right’s ambassador and emissary in the West Wing. And here he is casually throwing the “free market” under the bus in order to elevate crony capitalism, industrial policy, and rule of man over rule of law. Does Pence really believe that America loses in the free market every time? Really?

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