Conservatives' Moment to Stand Against Cronyism
May 1, 2014
Most Americans know that our revolutionary history began when a handful of brave patriots tossed crates of tea into Boston Harbor to protest unfair taxation. But what they might assume incorrectly is that our forefathers did so in response to increased taxes.
In fact, the Tea Act of 1773 actually lowered taxes on imports. What truly offended the colonists was that it only lowered them for one corporation, the politically connected East India Company, giving it an unfair, artificial advantage over smaller, local American competitors.
Thus, not only was the American idea hatched in protest to a government that was too big and too intrusive, but also protesting a government that was willing and able to unfairly benefit favored special interests at the expense of everyone else.
Today, it’s commonly known as “cronyism” and represents a uniquely malignant threat to American exceptionalism.
Cronyism simultaneously corrupts our economy and our government, turning both against the American people. It forces American families who “work hard and play by the rules” to prop up, bail out, and subsidize elite special interests that don’t. It empowers and enriches the few by disenfranchising the many.
Like a black hole, cronyism bends the economy toward the state, inexorably shifting wealth and opportunity from the public to policymakers.
The more power government amasses, the more privileges are bestowed on the government’s friends, the more businesses invest in influence instead of innovation, and the more advantages accrue to the biggest special interests with the most to spend on politics and the most to lose from fair competition.
But once profits depend on serving congressmen instead of customers, the interests of the elite diverge from those of the nation.
Cronyism has created a warped economy, increasingly built on connections instead of competitiveness. We see corporations posting record profits and jaw-dropping gains among elites, but slow growth, stagnant wages and limited opportunities for everyone else. Except, of course, in the Washington, D.C. area, home to six of the ten wealthiest counties in the United States.
That is not to say that anti-cronyism should be equated with – or descend into – the cheap, ugly populism of class warfare. We want successful Americans to succeed. All we ask is that they earn their success on a level playing field, subject to the judgment of the market – as truly successful Americans always have.
Cronyist policies come in many shapes and sizes, but the upshot is always the same: making it easier for favored special interests to succeed and harder for their competitors to get a fair shot.
There are direct subsidies, like those that are supposedly necessary to protect family farmers but overwhelmingly go to the top 10% of recipients.
There are also indirect subsidies, like the loan guarantees issued by the Export-Import Bank, which unnecessarily risk taxpayer money to subsidize well-connected private companies that are perfectly capable of securing private financing anywhere in the world.
There are complicated tax code carve-outs and loopholes, as well as complicated regulations, which are all tools the government uses to collude with big business to erect giant walls that guard against free-market competition.
And then there is Obamacare, truly a cronyist virtuoso’s masterpiece.
The president’s signature achievement privileges certain corporations by penalizing Americans who don’t buy health insurance from them, subsidizes the purchase of those products, protects those corporations from true price competition and market innovation, exempts special interests like labor unions, government employees, and large corporations from various mandates under the law, and may even guarantee those corporations’ survival — even if they lose money — through an open-ended taxpayer bailout.
Cronyist policies violate the conservative principles of free enterprise, equality of opportunity, and the rule of law. It’s time we stand up for economic fairness and fight back against special-interest privilege.
For three years now, establishment leaders have challenged anti-establishment conservatives to accept political reality, engage the politics of addition, and produce a viable plan to make principled conservatism appealing and inclusive — to grow our movement into a majority.
Well, here it is: a commitment to economic fairness and competition at the top of our economy to help restore jobs, growth, mobility, and opportunity to the poor and middle class.
There is a direct line from our forefathers on Griffin’s Wharf in Boston Harbor to where we stand today. They had the courage to challenge a government that was too big and too intrusive, but also unfair. The result was the creation of an America of, by, and for the people. Our challenge today is to reclaim it.
Lee Introduces Free-Market Energy Reform
May 1, 2014
WASHINGTON – Today, Senator Mike Lee introduced a bill that restores free-market competition to America’s energy sector by eliminating all tax credits for both renewable and traditional energy sources. The “Energy Freedom & Economic Prosperity Act” also reduces tax rates to ensure no new burdens are added to the responsible development of America’s energy resources. Sen. Lee’s bill is a companion to legislation originally sponsored by Rep. Mike Pompeo in the House, which has 34 cosponsors.
“Washington should not be using taxpayer money to pick winners and losers in the energy industry,” said Lee. “Consumer-driven, free-market competition provides a much better way to ensure Americans have access to reliable, affordable energy. The Energy Freedom and Economic Prosperity Act would level the playing field for all energy producers, forcing them to compete for consumer dollars rather than political favors.”
Congressman Mike Pompeo said: “American families shouldn’t have to subsidize energy companies when they’re having trouble enough paying their utility bills. Companies should have customers, not political patrons. With Sen. Lee’s leadership in the Senate on this important measure, we can eliminate insider deals on energy policy and save money for families across the country.”
The “Energy Freedom & Economic Prosperity Act” has received support from the American Energy Alliance, Americans for Prosperity, Americans for Tax Reform, the Club for Growth, Council for Citizens Against Government Waste, Freedom Action, Heritage Action, National Taxpayers Union, 60 Plus Association, and Taxpayers for Common Sense.
Opportunity, Cronyism, and Conservative Reform
Apr 30, 2014
Meeting with Utah's Business Leaders to End our Opportunity Crisis
Apr 25, 2014
This week I was able to meet with the Utah Valley Chamber of Commerce and the Board of Governors for the Salt Lake Chamber of Commerce.
I posted this picture to my Facebook page, and an interesting discussion followed:
Utah Public Land Summit
Apr 25, 2014
Update from Senator Fielder - Western Lawmakers Get Serious About Transferring Federal Lands to States.... pic.twitter.com/UGhgJx4JQZ
— Jennifer Fielder (@SenatorFielder) April 23, 2014
Watch and RT: @KenIvoryUT on the @GlennBeck Show Discussing #TransferPublicLands: http://t.co/mDCD1O99Bh #utpol #BiggerThanBundy
— Mike Lee (@SenMikeLee) April 22, 2014
@SenMikeLee addressed 9 States (NM, AZ, NV, WY, OR WA, UT, ID, MT) to #TransferPublicLands @KenIvoryUT @DLoesch http://t.co/dmsVK758mG #tcot
— Pacificrk (@pacificrk) April 19, 2014
@SenMikeLee addressed 9 States (NM, AZ, NV, WY, OR WA, UT, ID, MT) to #TransferPublicLands @KenIvoryUT @DLoesch http://t.co/USwpQWTi7h #tcot
— Darin Bushman (@darinbushman) April 20, 2014
Meeting with Utah's Students
Apr 22, 2014
For the last ten days, I have been actively traveling around the state meeting with Utahns. I held two town hall meetings last week. I have also met with business leaders, local officials, and various civil institutions. In addition to this active schedule, I also had the chance to meet with students at Ogden High School, Brighton High School, and Salt Lake Community College. Here are some highlights from these visits:
Meeting with students in Ogden
Meeting with students at Brighton High School
Today I taught the Brighton High School U.S. Government class. A student asked why I don't vote with my party 100% of the time. It was nice to see that they are paying attention to the voting records of their elected officials.Meeting with Salt Lake Community College
I enjoyed participating in the "Pizza and Politics" event at Salt Lake Community College today. I also appreciate those who participated in our discussion on higher-education reform.
The U.S. Government teachers at Brighton High School
Support Growing for Criminal Justice Reform: My Visit with Sheriff Winder
Apr 22, 2014
Today I had the opportunity to meet with Salt Lake County Sheriff Jim Winder. Among the several things we discussed, I wanted to make sure he was aware of my efforts to reform our criminal justice system with the Smarter Sentencing Act. He was supportive of my efforts, and I am committed to passing these reforms out of the Senate:
Recap of Mobile Office Visit to Sanpete County
Apr 11, 2014
ON April 10 my mobile office visited Nephi, Gunnison and Mt. Pleasant. During these visits members of my staff met with local residents and city officials to open a dialogue about the issues that are most important to them. Several law enforcement officials shared their concerns about tensions that exist between local law enforcement officials and federal law enforcment officials from agencies such as ICE and the BLM. My staff also learned about trucking regulations that were having an impact on a local small business. Local officials also took the time to showcase some of their local facilities and historical sites. I appreciate the feedback that was relayed to me by my staff from those who took the time out of their busy day to connect with my office.
