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

It is always a privilege to be back at the Heritage Foundation, the heart of America’s conservative movement. And it is to that broad, diverse movement that I have come to speak today about an issue with the potential to unify and revive our coalition.

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:

If you read through the comments, you will see that many of my followers were concerned that the unemployment figures that were cited were inacurrate.  I recognize that on a national level many Americans are struggling to find work, and when you calculate the low percentage of Americans that are participating in the workforce, it is clear that there is widespread failure in our economy to create the opportunities that many Americans are looking for.  This opportunity crisis is one of the primary reasons why I have introduced my conservative reform agenda.  One of the reasons why I am confident that these proposals will work is that they return much of the responsibility of governing away from Washington and back to state and local governments.  Utah is outperforming the nation in many key areas when it comes to addressing our opportunity crisis, and I would like to see this success replicated across the country.

Utah Public Land Summit

Apr 25, 2014

On Friday, April 18, I joined a group of lawmakers and policy makers from eight Western states in a summit to build support for the transfer of federal land back to the states.  After attending the summit it is clear that momentum is building for public land transfer across the West, and I will continue to work to educate Americans across the country about the burdens of excessive federal land ownership.  Here are some social media highlights of the summit:

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

brighton teachers

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:

If you want to learn more about why criminal justice reform is overdue, a new article in The American Conservative outlines the bipartisan consensus that is building to pass these reforms: http://www.theamericanconservative.com/conservative-sentencing-reform-politically-savvy-morally-right/

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.

Crony Capitalism and the Export-Import Bank

Apr 9, 2014

The American economy is the envy of the world, primarily because it is still seen as a place where anyone – regardless of who you are or where you come from – can work hard, play by the rules, and succeed. That belief is predicated on the notion that America has a thriving, competitive and free enterprise economy in which the best ideas and hardest workers win the day, while those who are less successful always have a fair chance to try again.

Lee’s Opening Statement at Comcast-Time Warner Hearing

Apr 9, 2014

Today Senator Mike Lee delivered the following opening statement in the Senate Antitrust Subcommittee Hearing on the Comcast-Time Warner Cable Merger.