01 May 2011

Crony Capitalism ~ Libertarian Koch's Own Words

Libertarian multi-billionaire industrialist-author (and MIT alumnus and philanthropist) Charles Koch writes an OpEd piece, Why Koch Industries Is Speaking Out in the WSJournal...
"Crony capitalism and bloated government prevent entrepreneurs from producing the products and services that make people's lives better. [...] Years of tremendous overspending by federal, state and local governments have brought us face-to-face with an economic crisis. [...] For many years, I, my family and our company have contributed to a variety of intellectual and political causes working to solve these problems. Because of our activism, we've been vilified by various groups. [...] Both Democrats and Republicans have done a poor job of managing our finances. [...] Federal data indicate how urgently we need reform: The unfunded liabilities of Social Security, Medicare and Medicaid already exceed $106 trillion. That's well over $300,000 for every man, woman and child in America (and exceeds the combined value of every U.S. bank account, stock certificate, building and piece of personal or public property). [...] Government spending on business only aggravates the problem. Too many businesses have successfully lobbied for special favors and treatment by seeking mandates for their products, subsidies (in the form of cash payments from the government), and regulations or tariffs to keep more efficient competitors at bay. Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want. The purpose of business is to efficiently convert resources into products and services that make people's lives better. Businesses that fail to do so should be allowed to go bankrupt rather than be bailed out. [...] Even though it affects our business, as a matter of principle our company has been outspoken in defense of economic freedom. This country would be much better off if every company would do the same. Instead, we see far too many businesses that paint their tails white and run with the antelope."
Food for thought. Too bad he's not more consistent with what his own companies do to belly up to the pork barrel of subsidies and other special favors. But in any case, decimating the bloatocracy is a worthy goal.

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