Politicizing Business, From Florida to California

David BoazGovernment subsidies and other aid to private corporations are inefficient. They distort the market process and channel valuable resources to companies chosen by government, not by consumers. They are also subject to political influence. It ’s an old story, government decisionmakers awarding contracts, loans, and grants to companies run by their relatives, friends, donors, or allies. During the Obama administration, a major Obama donor andformer vice president Al Gore profited heavily from “green energy” subsidies. President Trump tried to hold the G7 Summit at his own Florida hotel, allowing him to rake in millions of dollars from the U.S. and foreign governments. Numerous similar stories can be told aboutstate andlocal governments.But now there ’s a seemingly new twist: Governments rewarding or punishing companies as part of a partisan cultural war. In several recent cases, it seems that the companies in question were not so much donors or friends of policymakers, but just perceived to be on “our side” or “the other side” of some political issue. A decade ago, some Democratic politiciansdeclared that Chick ‐​fil‑A wasn’t welcome in their cities because of the political views of some of its owners. That effort collapsed pretty quickly when virtually everyone pointed out any such policy would violate the First Amendment.But look now. Gov. Ron DeSantis and other Florida Republicans are trying topunish the Walt Disney Compan...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs