Ever since FDR was elected president in 1932, the Republican Party had been vilified by liberals and the news media as the party of large corporations and the defender of greedy capitalists. That claim is not supported by the facts. In the last decade, large corporations in many industries have contributed far more money to the Democratic Party and democratic candidates than to Republicans.
As the housing finance crisis illustrates, Wall Street investment firms, large banks and even government sponsored agencies like Fannie Mae and Freddy Mac made large contributions to the Democratic Party and democratic candidates especially Chris Dodd, Barney Frank and Barrack Obama to prevent tightening of borrower credit standards and the regulation of new financial instruments like derivatives. The Federal government’s promotion of home ownership without regard to credit worthiness drove up house prices and ultimately cost small investors one third of their personal savings, including millions of 401k retirement accounts.
In the health care debate, large insurers and hospital groups have spent millions of dollars on Democratic supporters and spent additional millions running radio and TV ads to promote government healthcare. Clearly these firms believe that Nationalized Health Care will help their bottom line instead of resulting in savings for the taxpayer.
In the energy policy debate, large utilities and other industries have already reserved a large portion of the carbon credits without cost. These same industries provided significant campaign contributions to the Democratic legislators writing the bill.
Small businesses still believe in self reliance, free enterprise and limited government
One of the few benefactors of Cap and Trade legislation will be the Wall Street firms that will trade the carbon credits that are not already reserved. These firms have made significant contributions to Democratic candidates or are actually managed by politically influential Democrats such as Al Gore. Cap and Trade legislation will drastically increase the energy costs for the average American, however it will drastically increase the profitability of certain large firms that are politically well connected. By promoting government intervention into the natural supply and demand for energy, Wall Street firms will be able to achieve excessive profits at the expense of average taxpayers just as they did in the housing finance industry.
Large corporations have found that the party of free enterprise and limited government no longer serves their interests. They have found that the policies of the Democratic Party which allow government, not the marketplace, to determine the economic success of a firm are much more profitable. However, that may explain why millions of jobs have left this country for China and India and 70% of all jobs created in the last 10 years have been created in small businesses.
Small businesses still believe in self reliance, free enterprise and limited government. Perversely, it is the owners and employees of small businesses that pay the vast majority of the taxes collected in this country, and then those taxes are used to fund programs that thwart self reliance and free enterprise.
David Nace was raised in rural western Pennsylvania. Graduated from Penn State University with an Undergraduate degree in Engineering and a Masters degree in Business Administration. He has managed and co-owned a construction company since 1989. Dave is active in the Associated Builders and Contractors organization on the local and national level, and is able to demonstrate the consequences of legislation and policies in concise and easily understood articles.
