Monday, May 4, 2015

Carly Fiorina & Crony Capitalism

Elizabeth Warren is probably most recognizable for her schtick that the deck is stacked against the average American and that our economic model is becoming ever more unfair. On that, Ms. Warren, I and the latest applicant for the republican presidential nomination, Carly Fiorina, all agree.

There is no question that the ever mounting regulation and mandated costs are making it more difficult to open and operate businesses in this country, and that is the alpha and omega of economic opportunity for all Americans. According to Carly Fiorina, it is crony capitalism that is at the heart of this huge threat to our economy:

The former Hewlett Packard CEO also claimed to have the expertise needed to reform bureaucracies, an important point in light of her belief that “the government is one giant, unaccountable, corrupt bureaucracy.” She went even further than that at times, showing signs that she might run as a sort of conservative Elizabeth Warren, flashing some of the anti-corporate sentiment that has made the Massachusetts senator a darling of the Left. “Look, crony capitalism is alive and well.

Elizabeth Warren, of course, is wrong about what to do about it,” Fiorina said. “She claims that the way to solve crony capitalism is more complexity, more regulations, more legislation, worse tax codes, and of course the more complicated government gets and it’s really complicated now, the less the small and the powerless can deal with it.” Fiorina made that point while denouncing the net neutrality regulations recently approved by the Federal Communications Commission in a 3-2 vote.

“The dirty little secret of that regulation, which is the same dirty little secret of Obamacare or Dodd-Frank or all of these other huge complicated pieces of regulation or legislation, is that they don’t get written on their own,” she said. “They get written in part by lobbyists for big companies who want to understand that the rules are going to work for them. . . . Who was in the middle of arguing for net neutrality? Verizon, Comcast, Google, I mean, all these companies were playing. They weren’t saying ‘we don’t need this;’ they were saying ‘we need it.’”

Fiorina suggested that large companies, by backing such regulations, have emerged as an enemy of the small businesses run out of people’s houses and garages. “Google started out that way too, in a dorm room, but they seem to have forgotten that,” she said. They also comprise part of a “political class” that is “disconnected” from most Americans.

“The vast majority of people . . . believe there is a political class that is totally disconnected from their lives and that’s stacking the deck against them,” Fiorina said. It’s a diagnosis of American politics that is appropriate to her biography. “It’s interesting, people out there are not at all troubled that I haven’t held elected office; in fact, the people I run into consider it a great asset,” Fiorina said.

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