Tag: Carrier

American-style Crony Capitalism: What Happens When Government Sorts Things Out

 

When President-elect Trump intervened to stop jobs at a Carrier air conditioner plant in Indianapolis from moving to Mexico, Vice President-elect Pence offered this justification: “The free market has been sorting it out, and America’s been losing.” (Not that the president’s intervention was a big win, turns out.)

Of course, one shouldn’t expect only winners when markets are sorting things out. Markets aren’t magic. Yet it’s hard to conclude that American-style capitalism hasn’t overall sorted things out pretty well for Americans. Since 1980, the US has added nearly 60 million jobs. And the CBO says middle-class incomes are up significantly, either by 28 percent or 42 percent (in real terms) depending if you are looking at income before transfers and taxes vs. after. Oh, and the United States continues to push the technological frontier. Europe would sure love to have its own tech titans such as Google and Amazon, not to mention all those tech unicorns. (By one measure, the US has nearly 100. Europe? Just 12.)

Then there’s the alternative to markets sorting things out. That would be government sorting things out. Some call that “central planning,” while others term it “picking winners and losers.” Maybe add “crony capitalism,” too, since that can be the result when government engages in “business friendly” policies such as “targeted exemptions from legislation, advantageous rules by regulatory agencies, direct subsidies, preferential tariffs, tax breaks, preferred access to credit, and protections from prosecution,” according to the 2014 working paper “Crony Capitalism, American Style.”

What Did Stephen F. Hayes Say to His Kids After Trump Won?

 

Earlier this year Stephen F. Hayes was featured on the Ricochet Podcast and partly defended his Never Trumpiness by sharing uncomfortable discussions with his children. So, what did he say to his kids after Trump won and how does he feel now? During this transparent interview Steve also talks about free markets, crony capitalism, repealing Obamacare, regulations, the three reasons why the Obama administration should be considered an abject failure and a Ricochet member question.

Member Post

 

Apologies to @jamespethokoukis for the fair-use plagiarism of his original post So Donald Trump is taking credit for saving nearly half of the 2,000 Carrier manufacturing jobs that were headed to Mexico. The manner in which this happened makes me smile. And now he has his sights set on another Indiana manufacturer: Preview Open

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Jim Geraghty of National Review and Greg Corombos of Radio America applaud Donald Trump for selecting retired U.S. Marine Corps Gen. James Mattis to be Secretary of Defense.  They also roll their eyes as Clinton campaign officials contend white supremacists won the election for Trump.  And they explain why Trump’s deal is good for Carrier employees but a bad model to follow as an economic policy.

Mike Pence: “Free Market Has Been Sorting It Out, and America’s Been Losing.” Really?

 

Mike Pence CarrierDonald Trump yesterday warned that companies like Carrier “are not going to leave the United States anymore without consequences. Not going to happen. It’s not going to happen, I’ll tell you right now.”

When I heard the President-elect make that threat, I responded thusly on CNBC, calling the comments “chilling.” Money manager Doug Kass was even stronger: “I believe that speech was one of the most dangerous and reckless speeches I have ever heard from a President or President-elect.”

And nothing I’ve heard since then sounds much better. From the New York Times: