Wednesday, August 26, 2009

GE (Through Manipulation of Gvt) Brings Good Things to GE

"GE is lobbying to become the biggest rent seeker this country has ever seen," Steve Milloy, a pro-free market investor at the Free Enterprise Action Fund, tells Timothy Carney.

Rent seeking is expenditure of resources in order to bring about an uncompensated transfer of goods or services from another person or persons to one's self as the result of a “favorable” decision on some public policy.

Milloy provided Carney with a leaked email to make his case:
"The intersection between GE's interests and government action is clearer than ever," General Electric Vice Chairman John G. Rice wrote in an Aug. 19 e-mail to colleagues.

Rice was calling on his co-workers to join the General Electric Political Action Committee. "GEPAC is an important tool that enables GE employees to collectively help support candidates who share the values and goals of GE."

The full letter suggests that "share the values and goals of GE" really means "support policies that profit the company."..

"On climate change," Rice wrote, "we were able to work closely with key authors of the Waxman-Markey climate and energy bill, recently passed by the House of Representatives. If this bill is enacted into law it would benefit many GE businesses."

Most of all, Waxman-Markey would profit a GE joint venture called Greenhouse Gas Services, which deals in greenhouse gas credits, products that have value only if a cap-and-trade bill like Waxman-Markey passes.

The leaked e-mail shows how tightly GE connects PAC contributions and lobbying efforts. "Our Company is heavily impacted by a number of issues pending in Washington this fall," Rice wrote.

GE spent more on lobbying in the second quarter of this year than did any other company, according to federal lobbying files.

Carney's full column is here.

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