The recent coronavirus pandemic has left Americans scrambling to adjust to the new reality of state-sanctioned isolation. As governments struggle to address the crisis, big conglomerates have been trying to leverage this scare to get public approval wins and points with legislators.
We’ve all received emails from companies this week who can’t wait to talk about how much they’re helping. Amazon is conducting a massive hiring push; utility companies are postponing payments. But don’t be fooled. They never have, and never will, set aside their own self-interest and have only the consumers’ best interest at heart.
As this crisis continues, we should observe their interactions with legislatures and be vigilant in monitoring the favors for which they are asking.
Take, for example, Exelon. Exelon is a national energy supplier that operates in five states and the District of Columbia. It generated over $33 billion in revenue last year alone, and during the crisis has tried to drum up headlines by donating more than $1 million through its family of companies to fight the pandemic.
Additionally, they have suspended service disconnections to customers and have made direct donations to relief efforts. All of this is undoubtedly good for consumers and the public, but what do they want in return?
We’ve seen plenty of examples of what companies want when they work with governments. It’s the same thing they want from consumers: money. Whether it’s Foxconn and Amazon asking for relocation tax credits, or local developers cashing in on bad government policy, big companies do whatever it takes to turn their cash-grabs into positive PR.
You’ve seen the photo-ops. Company heads and elected officials standing together, praising the potential economic gains that will be made by these deals. In reality, however, these deals rarely amount to anything more than a taxpayer-giveaway to special interest groups.
In examining what the end goal is for some of these corporations, let’s look at an example of lobbying issues currently happening in Illinois. The state is looking to do an overhaul of the energy sector by passing a green energy bill, known as the Clean Energy Jobs Act.
State lawmakers created sections within the bill that would allow Exelon to inflict even higher costs on taxpayers, but then corruption probes into the company’s lobbying and relationship with state lawmakers got in the way and sidelined the bill in 2019. Now with the virus presenting an opportunity for a PR victory, it’s not surprising to see the neighborhood utility conglomerate strike a more helpful appearance right before the state legislature is expected to move the bill.
While $1 million and some customer bill relief may sound generous, it’s barely even a fraction of the hundreds of million this Fortune 100 company receives in subsidies from taxpayers annually. And what Exelon would get in return with the passage of this new bill will amount to substantially more than its $1 million PR push. At the end of the day, companies do what’s best for their bottom line.
Companies like Exelon operate as opportunists when disasters provide a chance to gain support from the public (think Oakley sunglasses with the Chilean miners.) Still, we can’t allow that to distract from the predatory actions these same companies use when pushing to gain access to tax dollars.
Exelon has attempted to hijack a clean energy jobs bill to receive more business and subsidies — ensuring continued cash flow regardless of performance, all while destroying any good the bill would do.
As we watch the world respond to this terrible crisis, we must remain vigilant to the cronyism that persists in the economy today from massive corporations whose entrepreneurial instincts have led them to reach for the state coffers in hopes at an easy payday.
While we should praise the companies who commit to actions that better the public good, we must never lose sight of the possible corruption these conglomerates are perpetrating. The health of our nation depends on it.
By John Stossel • Reason
Today is the Super Bowl.
I look forward to playing poker and watching. It’s easy to do both because in a three-hour-plus NFL game there are just 11 minutes of actual football action.
So we’ll have plenty of time to watch Atlanta politicians take credit for the stadium that will host the game. Atlanta’s former mayor calls it “simply the best facility in the world.”
But politicians aren’t likely to talk about what I explain in my latest video—how taxpayers were forced to donate more than $700 million to the owner of Atlanta’s football team, billionaire Arthur Blank, to get him to build the stadium. Continue reading
The function of an Inspector General (IG) in the federal government is to detect waste, mismanagement, fraud, abuse, and even criminality. Each federal department or agency has an IG. But not all IGs are created equal. Some are fair minded watch-dogs who protect the taxpayer and follow the law in a nonpartisan way. But some are not. NASA’s Inspector General, Paul Martin, has repeatedly proven himself to be a defender of cronyism and a partisan hack.
Congressional leaders passed along whistleblower information to Martin that NASA had employed a Chinese spy and that Obama NASA appointees sought to circumvent the rules prohibiting the hiring of foreign nationals at NASA. Martin was angry with congressional leaders for revealing the spy problem, not with NASA officials for breaching our national security. He did nothing. Within days, the FBI arrested the Chinese spy, Bo Jiang, at the airport as he was fleeing to China on a one-way ticket with a treasure trove of sensitive information. Sadly, this was not the spy’s first data dump. But Martin wasn’t interested in investigating.
Martin isn’t just soft on spying at NASA. He has not protected the taxpayer, or rooted out waste or fraud. For example, NASA employees objected to the special treatment given SpaceX and provided evidence of favoritism, bid-rigging, and a long list of unethical and illegal actions. The entire process was subverted to benefit SpaceX, while the taxpayer was fleeced and competitors locked out. Long before the process was completed, top NASA officials were directing staff to give the award to SpaceX. In other words, the process was backwards — “Fire! Aim! Ready!” Continue reading
by Jeffrey H. Anderson
After the upset of House majority leader Eric Cantor at the hands of GOP primary voters, many congressional Republicans may be looking for ways to show they are listening to their constituents. One way they can do so is to take renewed aim at Obamacare.
Obamacare’s risk-corridor program is serving as a slush fund for President Obama. He is using that fund to placate his insurance company allies whom he double-crossed. After Obama declared last fall that insurance policies banned by Obamacare would be unbanned by presidential proclamation, insurers were understandably alarmed. Obama’s lawless decree meant that millions of people who already had insurance—and who were likely to be healthier on the whole than those who didn’t—would not be forced into the Obamacare exchanges after all. His decree, therefore, likely made the exchanges’ risk pools even worse. Continue reading
by Charles G. Koch
“We didn’t build this business—somebody else did.”
So reads a sign outside a small roadside craft store in Utah. The message is clearly tongue-in-cheek. But if it hung next to the corporate offices of some of our nation’s big financial institutions or auto makers, there would be no irony in the message at all.
It shouldn’t surprise us that the role of American business is increasingly vilified or viewed with skepticism. In a Rasmussen poll conducted this year, 68% of voters said they “believe government and big business work together against the rest of us.” Continue reading