16 August 2011 0 Comments

Big Business Is Not the Forgotten Taxpayer’s Friend Part 6: Corporatists, Government Monopolies, Natural Monopolies

Timothy Carney of the Washington Examiner has done a series on the damage to both freedom and the economy that General Electric’s Jeffrey Immelt and his Board have done. GE is now in the business of subsidies, bailouts, regulations and mandates. Jeffrey Immelt seems unaware of principles of American Exceptionalism and Limited Government.

Jeffrey Immelt, CEO of GE

Timothy Carney points out the difference between a natural, free market monopoly that grows because it delivers goods and services at a price the individual and business consumer can afford and a politically  favored monopoly. Free Market contract and give way to new ideas, new products, new companies. THINK IBM of 1960. The Myth of the Robber Barons makes this point historically.

The point of this exercise is this: in a free market, companies profit when they deliver something that consumers want at a price consumers are willing to pay. In a government-directed market, mandates and regulations create demand while subsidies distort prices. As a result, Obamanomics doesn’t just cost taxpayers and enrich the well-connected, it also replaces the will of the consumer with the will of politicians and bureaucrats — this makes us much poorer.

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