Anti-Cronyism: Will the Other Political Parties Follow?

“Ending government bailouts and corporate handouts will allow for huge, immediate, direct tax cuts — giving back desperately-needed money to American families — every year — to spend, save, or give away as they see fit.”

– Libertarian Party Website (below)

The Libertarian Party, the self-described “Party of Principle” advocating “minimum government, maximum liberty,” has a worthy stance on ending special government favor to business (cronyism). For energy policy, this would mean a long overdue contraction of the solar power, wind power, and ethanol industries. It would also be big trouble for Elon Musk’s Tesla and other electric vehicle companies.

The LP pledge is reproduced below, followed by a discussion of what the virus is, and why it should be ended.

The Pledge

If elected, I will sponsor and work diligently to pass legislation to end government bailouts, grants, loans, loan guarantees, and other handouts to private businesses; eliminate unnecessary government spending, which fuels crony capitalism; open up bidding of government contracts; and require all government contractors and their employees to agree to abstain from lobbying or from promoting or opposing political campaigns.

What is crony capitalism – and why must we end it?

In a marketplace that’s free of onerous government fees, rules and regulations, businesses are free to innovate and to make and sell their goods and services. Customers are free to buy, or not buy.

With crony capitalism, politicians interfere with this process by doling out favors to well-connected businesses:

• legal loopholes, laws, regulations, or red tape designed to give those businesses an unfair advantage or drive their competitors out of business
• lucrative government contracts
• direct handouts (corporate welfare)
• government mandates that force people to buy their products – whether they want them or not

What does the politician get out of it? Campaign donations. Jobs for his family, friends, and allies. Secret, insider investment information. A plush job when he retires.

Whether the politician solicits the business or the business lobbies the politician, everybody else loses:

• Competitors, often small businesses, are knocked out of business and their employees are thrown out of work.
• Customers are forced to pay higher prices and endure worse service.
• Customers are forced to accept lower-quality, less safe products and services.

What will happen when we end crony capitalism?

• Ending government bailouts and corporate handouts will allow for huge, immediate, direct tax cuts — giving back desperately-needed money to American families — every year — to spend, save, or give away as they see fit.
• Better quality, safer goods at lower prices will put hundreds of billions of dollars back into family budgets and improve everyone’s quality of life.
• Small businesses will thrive, creating millions of productive, sustainable jobs.
• Fewer lobbyists will make politicians more responsive to the wants and needs of American citizens and taxpayers.