The audacity of corporate cronies

It’s almost a cliché to call small business the backbone of the US economy, but it happens to be true. According to Inc. Magazine, in 2010 there were 27.9 million small businesses in the US, compared to just 18,500 companies of 500 employees or more. Small businesses employ almost half the nation’s private sector workforce, and since 1995 have created two out of every three net new jobs in this country. They’re also more innovative than their larger counterparts, with small tech firms producing 16 times more patents than large firms, and accounting for 43 percent of high tech employment.

Yet when it comes to a “voice” for business, we typically default to the leaders of the largest businesses in the world – people who, as a rule, do not have our interests at heart, and who don’t hesitate to use their megaphones to advance their interests at the expense of ours.

Take, for example, Jeff Immelt of GE, a company that represents everything that’s wrong with big businesses.

Under Jack Welch, Immelt’s predecessor, GE was a pioneer in outsourcing US jobs, with Welch saying that ““Ideally you’d have every plant you own on a barge to move with currencies and changes in the economy,” and that their parts suppliers needed to “migrate or be out of business.” Under Immelt, the company holds record levels of cash offshore – $119 billion in 2016 – and paid an effective federal income tax rate of -1.6 percent on $58 billion in profits over the past ten years. And they are the ultimate in crony capitalists. In 2011, Forbes writer Dan Ikenson highlighted the following excerpts from the DC Examiner:

Tim Carney gave his impressions of this budding relationship between GE and the Obama administration in the DC Examiner last July:

First, there’s the policy overlap: Obama wants cap-and-trade, GE wants cap-and-trade. Obama subsidizes embryonic stem-cell research, GE launches an embryonic stem-cell business. Obama calls for rail subsidies, GE hires Linda Daschle [wife of former South Dakota Senator and Obama confidante Tom Dachle] as a rail lobbyist. Obama gives a speeeh, GE employee Chris Matthews feels a thrill up his leg. I could go on.

And Carney does go on in a December 2009 Examiner piece:

Look at any major Obama policy initiative — healthcare reform, climate-change regulation, embryonic stem-cell research, infrastructure stimulus, electrical transmission smart-grids — and you’ll find GE has set up shop, angling for a way to pocket government handouts, gain business through mandates, or profit from government regulation.

And yet, when we look for someone to speak on behalf of business, Jeff Immelt somehow grabs hold of the mic and purports to speak on their behalf. It’s true in government circles – Immelt sat on Obama’s Council on Jobs and Competitiveness and now sits on Trump’s new manufacturing council – and it’s true in the public forum.

Two days ago, for example, he gave remarks to students at Georgetown. And, under the guise of advancing the American Way, advocated yet again for globalism, talking GE’s book.

He asks the question: “How did an ideal so connected to American influence and success become so demonized?” He offers some platitudes – we could have done it better – but later, his own hubris shows why when he says, “I don’t listen to people who have no global context, never been in a factory or don’t want to compete.” In other words, if you’re not already an offshoring globalist, screw your opinion.

His solution to our challenges? More globalism and more government intervention. Other companies should hire more talent overseas and produce in those markets. The US government needs to invest in infrastructure. Business should have more access to capital, especially government-backed capital. And of course we should lower business taxes in the US.

There’s nothing wrong with Jeff Immelt talking his book; that’s his job as CEO of his company. But there’s something tremendously wrong with any of us giving credibility to a self-serving globalist crony capitalist when he pretends to speak to our interests.

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Anon
Anon

The only thing that matters to the assholes in Washington is – did the check clear. They care nothing of the small business, individual, or anything else for that matter that does not involve a check clearing. We have the best government money can buy, and an idiot population that just sits and hopes they will get more free shit. The system is broken, plain and simple, and the only way out is a BIG depression ala 1929 on steroids. The crony’s like Immelt are like the embedded tick that must be burned out.

kokoda - the most deplorable
kokoda - the most deplorable

GE is suffering so Trump helps out by reducing corporate taxes. So funny, they don’t pay taxes even at the higher rate.

Robert E. Moran

Great comments here and yes, GE has not paid taxes for 12 years. What’s wrong with this picture?

suzanna
suzanna

Of course it would be reckless to say I hate GE,
or Immelt so maybe I should say I don’t respect their
business model?

Have any readers heard about a bill introduced named,
“The Replace American Workers Act?” Guaranteed to
shock you, maybe.

http://www.breitbart.com/big-government/2017/05/04/gop-propose-american-workers-replacement-bill-amnesty-immigration/

The article will speak for itself.

Thank you Crimson.

xrugger

Immelt is the worst sort of corporate scum that is always produced by a late stage crony capitalist, proto-fascist “republic.” He and others like him (Musk, Holmes, et. al.) should all be sewn into a giant canvas bag and thrown into the river like a litter of unwanted kittens.

When sons-of-bitches like Immelt successfully lobby the government to pass legislation that tells me what kind of f%#@ing light bulb I can buy and then gear up to produce the crappy (though I’m sure profitable) replacement, a thinking man ought to know the jig is up in the “free market” scam. Now, before any of you global warming zipperheads that might be lurking out there start blathering about how we all have to “pitch in,” let me just politely tell you to STFU! Go somewhere and burn buffalo shit to light your teepee or whatever mud hut equivalent your delicate sensibilities an (no doubt) unassailable intellectual honesty commands you to go live in.

Whew!! That felt good. I’ve wanted to spew that bile for a long time. Ever since I bought a lifetime supply of incandescent bulbs, I’ve wanted to smash up a few compact fluorescents and pound the jagged remnants up GE’s collective keister.

Small business cannot flourish because corporatocracies and their government lackies are throwing up obstacle after regulatory obstacle in order to inhibit competition which might adversely affect their bottom line. Usually this sort of crap is justified on “safety” issues or because it will be better “for the children.”
When these “titans of industry” and “public servants” aren’t blowing each other at K street cocktail parties, they’re formulating ways to enrich themselves and impoverish the rest of us. Of course, this is all “for the greater good.” I’m certain there are no selfish motives involved.

The truly sad part is that most of our fellow “citizens” have accepted the endless stream of bullshit in every form as normal because t0 think independently/critically would be just too hard.

So, all you fat bastards and porky bitches get on your government subsidized scooters and tool on over to Walmart for your latest government subsidized purchase of government mandated, Chinese made junk…that’s after you cash your “disability” check at customer service of course.

That’s my rant. Gotta go now. I’ve got a light bulb that needs changing.

starfcker
starfcker

You can still by regular incandescent bulbs for commercial use, and even home depot has halogen ones. EcoSmart 100W Equivalent Eco-Incandescent A19 Double Life Soft White Dimmable Light Bulb (8-Pack) 58295 at The Home Depot – Mobile
http://m.homedepot.com/p/EcoSmart-100W-Equivalent-Eco-Incandescent-A19-Double-Life-Soft-White-Dimmable-Light-Bulb-8-Pack-58295/206200394

WIP
WIP

Corporations and government will become one and rule the world. They will find a way to get rid of everyone they don’t need.

Boat Guy
Boat Guy

Xrugger please remember some of us Americans on disability did work and earn that monthly check after 42 years of working and nailed by a catastrophic illness . I still manage to do productive things to help out and pay taxes on a part time wage that for my current employer is a mega bargain for a ma/pa small business . Please don’t lecture about working and collecting disability it’s all a legal situation for people that are still willing but have health issues that slow them down . Fact my wife and I paid a higher percentage of taxes then good old Mitt Romeny on $12 mill and obviously more than GE . So as we struggle along I am attempting not to deteriorate any more and that’s a full time job . Just went to the hand gun range and my hand strength and coordination is back at about 80 to 90% . So I have your back when the shit hits the fan 1) I hit what I aim at 2) can’t run anymore so I have to make a stand !
Run save yourselves , I will hold them off as long as I can . As for long term care plan , I will save the last round for myself LMAO

doug
doug

I’ll second that, boat guy. At 68 I can help with the stand, but I won’t be running with the Rangers. All you healthy peeps out there–NEVER take fluoroquinolone antibiotics(cipro, levaquin, others) They will destroy your body slowly, but steadily.

xrugger

Fear not Boat Guy. My ire is not directed at you or any others who are genuinely disabled and avail themselves of the system in a legitimate fashion. Not my intent to paint with too broad a brush. It’s just way more fun to lambast the fatties, phonies and frauds who abuse the system. Likely your the sort of guy I would stand shoulder to shoulder with any day.

Ed
Ed

I agree about the fatties and frauds. I got torn up in a car wreck in ’15 and lost much of the use of my left leg and left arm. I don’t get any disability checks but I do use handicapped parking and the electric shopping carts when I can, but the carts are usually taken by people who are only “disabled” by being fat and triflin’.

The parking spaces are usually mostly filled with the cars of people who park, hang their placard on the mirror and then walk into the store without so much as a limp. The fraudsters piss me off.

rhs jr
rhs jr

Besides printing dollars and “controlling” Congress to make the laws to their advantage, TPTB have infinite dollars to loan to or invest with their minions (Jared Kushner borrowing a billion from Soros etc and then forgetting to declare it) or to buy any successful small business or radio/TV station. Any Chosen Boob could succeed under those conditions.

musket
musket

I remember the commercials where Immelt reminded us of how teamwork was the key and how the lessons learned playing football for Dartmouth were paying off now that he was the CEO of GE. What b/s……I bet that there are 10 high school teams in Texas that could beat Dartmouth head to head.

underfire
underfire

Thanks for posting, this was a very good article showing the big business/Government connection, or stranglehold over the economy.

Add to this a populous who’s majority WANTS more of Big Brother taking care of us, all financed with three billion dollars a day in deficit spending and you have a pretty good picture of where America now stands economically.

Mike Murray
Mike Murray

I spent my life working for, managing, and (at other times) owning a small business. The government does everything possible to make small business impossible. Regulatory compliance, taxation, complexity when starting a business, and employee hiring policies have made small business extremely difficult.
Oh, and stupidly, we also expected to make a profit, because the crony “trickle down” doesn’t flow this far.

Trader Jim
Trader Jim

This above is why I sold my businesses, circa 2006 and most of my RE investments about the same time. Did not time it because I ‘knew’ the bubble was going to burst, just got tired of all of the BS government back then, and saw that no matter what happened, these assholes were going to make it so I had to share more of my profits with them – at gun point. So, my solution was simply selling out, and reducing my economic foot print as much as possible. This serves two purposes, 1. I can see all of the damage our ‘rulers’ are doing in our name, and at least have a conscience that ‘I’ am not paying for it, and 2. I can avoid being a target for the money grubbing local asshat ‘regulators’ which are nothing but revenue generators under the guise of ‘its for your own good’. I have had many new business ideas, and frankly, the capital sitting around (thanks to the fed, not making squat), but every time I pencil out the math, then add in the government BS premium, I quickly absolve myself of the idea, since all I will be doing is aiding and abeding a corrupt system with my ideas. Fuck them. I suspect I am not alone, as I know many others, whose net worth is in the Multi Millions that would just as soon go to a beach than start a business in today’s environment. Comical how all of these PHd economists constantly talk about ‘cash on the sidelines’ just waiting to be ‘productive’ and then their answer is more government. I KNOW a lot of the cash on the sidelines, and frankly, if the government simply shut down tomorrow, that cash would go to work almost immediately. Until then, enjoy the desert you government cronies.

Ed
Ed

TJ, I understand what you’re saying. Possibly, the PTB will get around to hoovering up all the cash by simply crashing the dollar. Cash on the sidelines may be safer somewhere other than the usd.

Mike Murray
Mike Murray

Trader Jim, me too. It’s why we are retired, 45 miles from the nearest town, in the mountains at 8000 feet. We pay as little to the State in all it’s forms as we legally can. I hope everyone enjoys the “E-ticket” ride to hell.

MrLiberty
MrLiberty

Crony-capitalism was part of the FOUNDING of this country. Of course back then it was called Mercantilism, but the truth of the collusion between business and government has always been the same. Mussolini correctly called it Fascism. It has also been called corporatism. Clay and Lincoln referred to it as the “American System” and it was the foundation of the Republican Party at its roots. The fundamental ROOT of the issue is government power….NOTHING ELSE. A business in a free market, ONLY gets big and wealthy by pleasing customers who in turn voluntarily exchange their money for the goods/services the company provides. Whenever a price/service/etc. opportunity arises (absent the destructive protectionist power of the government), a competitor arises to take advantage. Pretty basic stuff. But businesses don’t like all that pressure and all that competition, so they employ the legal violence monopoly of the government on their behalf. In fact, the truly smart ones get in on the ground floor and help found the government, set up financially beneficial banking structures (that criminal Alexander Hamilton), and write a Constitution that empowers the government to help business as needed while selling the idea as something that will be great for the citizens. The ONLY solution is for the people to reject the idea that government should have ANY POWER WHATSOEVER (or be SO LITTLE as to have no power whatsoever over business choices, permits, licenses, the money supply, interest rates, and all the other things that empower governments at all levels to benefit their friends while destroying their friends’ competition. We truly have ONLY OURSELVES to blame, for government power is NEVER put to the benefit of the citizens, but rather ONLY wielded on behalf of business interests. Any citizen benefit is simply by accident.

Mike Murray
Mike Murray

“Government” has only one product to sell- power.
The power to tax, spend money, regulate land, regulate construction, and regulate competition. Once people get on the receiving end of that, and the political class gets in on the dispensing end, there is great incentive to continue the quid pro quo. Today, when more than 50% the common citizens (those who the Founders depended on to stop such madness), receive some form of government largesse, we are truly screwed.
One of the most brilliant bits of chicanery which allowed this to happen was the “withholding tax”.

BL
BL

Very well put Mr. Murray.

Mike Murray
Mike Murray

Thanks. No genius here, just reading and observation.
And willingness to accept the ugly truth.

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