Should the GOP give up it’s Corporate Affairs?

GOP Senator Jim DeMint wrote and article for the Washington Times saying that the Republican party should end it’s affairs with corporate elites. Here are a few portions from this piece:

“Earlier this month, the United States Chamber of Commerce handed out its annual “Spirit of Enterprise” awards to those members of Congress who voted with the Chamber 70 percent of the time on its most important legislative initiatives of 2008. The only four Republican senators who did not receive the award were Jon Kyl, Jeff Sessions, Jim Inhofe and me – four of the most conservative members of the Senate.

What were the conservative offenses? We opposed the failed bailouts and stimulus. Which explains why many liberal Democrats scored higher, including Barack Obama and Hillary Rodham Clinton.

The Republican who scored lowest of all – that is, the Republican lawmaker supposedly least aligned with the nation’s business community – was Ron Paul, a strong constitutionalist famous for his strict adherence to a free- enterprise libertarian philosophy.”

Which brings us to the title of this post. Should the Republican Party give up it’s Corporate Affairs? Ethically, this would be yes. It is obvious that DeMint is right and that the politicians are being rewarded for handing out taxpayer money. This is known in Public Choice Economics as rent-seeking, defined as when a politician hands out benefits to a small group while dispersing the costs upon the whole.

As this sounds like a good idea, is it practical? No. Politicians get elected by maximizing votes. They maximize votes by handing out favors to special interests. Corporations are special interest. The politicians will not get elected if they continually hold back from receiving legalized bribes and handing out favors. This may seem nuts to most people but it is not. These politicians and corporations are simply reacting to the incentives that they are faced with.

What politician doesn’t want to get elected? I haven’t met one. They are simply using the most efficient way to get elected in a political market. What special interest does not want to recieve money? I do not know of any. They are simply using the most efficient way to get money. As DeMint’s rhetoric sounds nice and he is rousing people like us, he will not beable to gain a large amount of followers who’s seats will not be put in jeopardy by such a move.

The rest is here.



The URI to TrackBack this entry is:

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: