James Pethokoukis

Politics and policy from inside Washington

One more from the crony capitalism beat

January 27, 2011

From the great Jerry Bowyer in Forbes:

The fact that Immelt is a Republican is as beside the point as the fact that Daley is a Democrat. Increasingly our nation is divided, not between Rs and Ds, but between TIs and TBs: tribute imposers and tribute bearers. The imposers are gigantic banks, agri-businesses, higher education Colossae, government employees, NGO and QUANGO employees and the myriad others whose living is made chiefly by extracting wealth from other people. The bearers are the rest of us: the people who extract wealth from the earth, not from others.

Does anyone seriously believe that Bill Daley, son of the founder of Chicago’s great political machine, is something other than a crony capitalist? That he became president of a Baby Bell phone company, created by government fiat, protected by state public utility regulators because of his knowledge of telecommunications technology and not because of his association with power? Does anyone believe that when JPMorgan purchased a regional Chicago bank, which required both federal and especially state regulatory approval, that Daley’s political credentials were irrelevant?

The Daleys of the world, the Rubins of the world, the Rahm Emmanuels of the world who rotate out of commerce secretary, treasury secretary, White House chief of staff positions and into positions at the top of investment banks, government-regulated utility monopolies and various GSEs are our nomenklatura. They are the members of our permanent ruling class. They are tribute imposers. The fact that they wrap themselves in the rhetoric of street-level populism just means that they are poseurs in addition to being imposers.

Are the Republicans, like Immelt, just as bad? No, but they are almost just as bad. And almost just as bad is not nearly good enough.

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