Sep
15
2011

Crony Capitalism Isn’t Freedom

My childhood friend Paul Ryan is again shaking up Washington with conservative answers to economic reforms. The video above is quite good. Pass it on to your friends.

Something he tags as “crony capitalism” resonates with me. Ryan argues that Washington has the uncanny habit of picking and choosing industries rather than letting free markets drive them. Politicians decide what businesses are “too big to fail” (i.e. which do we financially save from going broke). They also decide which industries are worth forcing success (like wind mill farms that generate little energy but are, in politician’s minds, the “future”).

Wendy and I know exactly what he’s talking about. Our family business trains speakers and debaters in how to “think, speak and persuade.” Washington doesn’t care about underwriting such nonsense. Mention God and you’re stripped of any financial advantage the government would grant you.

In other words, government has grown to become the ultimate king. It knights that which it deems worthy to succeeded, and it strips the free of their ability to create and serve. This isn’t freedom. Crony capitalism is thuggery, and it will continue to ruin America’s ingenuity and greatness.

Ryan makes a ton of sense. Here are some key points that Ryan makes in the interview. I put retweet buttons on each of them:

  • Lower our tax rate for businesses and individuals to 25%. [tweet]
  • Our tax code is so complicated, it is one reason we are failing. [tweet]
  • Crony capitalism: we pick winners and losers in Washington. [tweet]
  • If we want a prosperous economy, we need a good tax policy. [tweet]
  • Uncertainty is plaguing business. Job creators need certainty. [tweet]
  • Loopholes exist to favor someone. Tax rates are so unfair because of it. [tweet]
  • Congress passes complicated tax laws, it’s difficult to navigate. [tweet]
  • Current tax code puts up barrier to entry for innovation. [tweet]
  • Burn the tax code and start over. “I’ll bring the s’mores” – Ryan. [tweet]
  • Tax code should remove barriers to encourage businesses to take risks. [tweet]
About Chris Jeub

Chris is the father of 16 children, busily running the family businesses and learning the depths of love along the way.

  • DavidS

    Much of what Ryan said was good, but not radical enough.

    Here’s my take on a couple of the talking points:

    “Lower the tax rate … to 25%”
     – How about 0%?  I’m not sure I trust anyone in the Govt to spend any of the money God has give me stewardship over.

    “If we want a prosperous economy, we need a good tax policy”
     – Isn’t that an oxymoron – a good tax policy?  How about a tax abolition to make for a prosperous economy?  I would say that an economy’s stability and prosperity are inversely proportional to the amount of taxes stolen.

    “Burn the tax code and start over.”
     – He was on the right track until the last 3 words.  Just burn it and scatter the ashes.

    The one suggestion I was looking for, but didn’t see was the abolition
    of the income tax.  The underlying assumption of the income tax is that
    the State owns all your money and earning power, but they’ll let you
    keep some of it. 
    (http://blog.mises.org/17058/epub-the-income-tax-root-of-all-evil)

    My view – taxation is theft.  Even if I approve of a given tax, it is still theft to the one who doesn’t approve.

    • http://www.jeubfamily.com Chris Jeub

      You are so radical, DavidS!
      Just kidding. Sort of.

      Adjustment to your view. INCOME taxation is theft, not all taxation. Voluntary taxation (like sales tax) is not theft.

      • DavidS

        Thanks for posting my “crazy” comments above.

        I appreciate that although you didn’t agree with all of it, you allowed me to say  my piece.  Thanks for putting up with me!

        Adjustment to the adjustment of my view   😉

          – I’m not sure voluntary taxation exists.  In the example of the sales tax, I’m forced to pay it with every purchase.  If I refuse to pay it, the freedom to spend my money is restricted against my will; ergo I cannot purchase what I desired to purchase.  If it was truly voluntary, I would have the option to purchase the item without including the tax amount.