Crony Socialism: When Private Sector Losers Turn to Big Government
We’ve seen a lot of people and companies benefit illegally and/or unfairly from the policies of the Barack Obama Administration.
The Obama Administration routinely picks losers at the expense of winners -- the common thread amongst the losers being their personal, political and/or campaign cash ties to the Administration.
The much-ballyhooed Solyndra is but one of many born-to-be-bankrupt, Crony Donor recipients of Obama Administration non-green, non-energy cash grants or loan guarantees. 80% of these grants/loans went to Obama donors. (At least) nineteen recipients have already gone bust.
The United Autoworkers Union (UAW) -- uber-allies of Barack Obama and Democrats everywhere - illegally benefited from the Administration eviscerating two hundred-plus years of bankruptcy law. Obama, Inc. threw bond holders over the side to over-reward their union shock force buddies.
After three-plus years of this Third World Crony Kleptocracy, is it any wonder our economy remains frozen in Uncertainty amber?
And is it any wonder that more and more private sector losers are lining up to get on board the Crony Socialist locomotive?
The latest to try to get their train ticket punched is T-Mobile, the struggling cellular phone company. And they should know better – or may know better than anyone else how this Administration works.
T-Mobile just tried to sell itself to AT&T. Throughout the process, they sounded like a reasonable free market firm.
T-Mobile's parent Deutsche Telekom is not in a position to finance the necessary large scale investments in the U.S. for T-Mobile to remain competitive.
So said T-Mobile CEO Phillipp Humm -- to the Senate, in testimony on the merger.
With this backdrop, T-Mobile and Deutsche Telekom had to make some difficult decisions. Remaining a competitive force in the U.S. wireless marketplace... would be very difficult for us given our overall group debt situation and our high capital investment needs in Europe.
So said Deutsche Telekom CEO Rene Obermann -- to the House, in testimony on the merger.
Makes sense -- if you can’t afford to compete, sell to someone who can. It doesn’t do your customers or your employees any good if you can’t keep up -- and eventually, inevitably go under.
But the Obama Administration and their leftist cohorts were a titanic merger roadblock and ultimately forced AT&T and T-Mobile to withdraw their application.
What lesson did T-Mobile learn? Sadly, the Obama Administration Crony Socialist one: if you can’t make it in the free market, have Big Government harass and harangue your competitors.
Verizon now wants to buy some spectrum -- the airwaves for all things wireless -- from a cable company consortium. It's a deal even more innocuous than the AT&T-T-Mobile merger.
But Verizon is (obviously) a T-Mobile competitor. So T-Mobile has joined with Media Marxist Big Government proponents to decry the deal -- and try to block it.
In other words, the same ignoble fate T-Mobile just suffered at the hands of the Leviathan, they now seek to inflict on someone else.
Given the Obama Administration’s Crony Socialist track record, T-Mobile’s reaction is pathetic but understandable. If you get beat by them, join them.
If only it weren’t happening so often -- and weren’t so incredibly damaging to our nation’s economy.