There is a memo that has been leaked that shows General Electric playing a shady political game. They see the writing on the wall and are angling to make a profit from it, meaning they are willing to spend a lot of money to influence legislation that will result in huge profits for them.
Before we go any further, I am all for profits, but those profits have to come in a free market system. This is not anything close to a free market way of making profits. This is rent seeking:
"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."
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"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.
General Electric also stands to make a mint off of the health care reform bill. Andrew Wilcow and Nick Rizzuto outlined this in the Washington Times back in May:
Recently at the Business and Social Responsibility Conference, General Electric Chief Executive Officer Jeff Immelt referred to America’s current economic crisis as part of a "reset" rather than part of an economic cycle, saying, "People who understand that will prosper in the future, and people who don’t understand that will get left behind."
In the same address, Mr. Immelt, who is also a member of Mr. Obama’s economic recovery advisory board, added, "The intersection of government and business will be changed, maybe for a generation." In other words, companies should be prepared to beg for a seat at the government’s table if they plan on remaining lucrative.
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Mr. Immelt’s words betray GE’s willingness to partner with the Obama government in order to turn a profit. To this end, GE has appointed Mr. Obama’s former nominee for secretary of health and human services, Tom Daschle, to the board of advisers for Healthymagination, an initiative launched by General Electric in partnership along with Intel, which will invest $6 billion over the next six years on "health care innovation that will help deliver better care to more people at lower cost."
Mr. Daschle said, "We can only find real solutions in health care when business, government and their partners work together."
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The profitability of GE’s new venture will depend heavily on the nationalization of the health care industry. The standardization and streamlining of health care recordkeeping, something on which Mr. Obama ran in 2008, would require a massive government contract for the technology to achieve such standardization.
Mr. Obama has introduced a plan to computerize all health records within five years. Independent studies from Harvard, Rand Corp. and the Commonwealth Fund have estimated that such a plan could cost at least $75 billion to $100 billion over the next 10 years. Healthymagination is readying just such a technology, claiming that they will seek to "increase the use and capability of electronic medical record (EMR) technology and other information technology." With Mr. Obama’s ally Mr. Daschle on board, Healthymagination is sure to have more than a leg up on its competition when it comes time to dole out these massive contracts.
GE plans to invest $6 billion over six years in hopes of making $100 billion over the next 10 years. Which is why GEPAC has given so much money to Democrats lately.
Rep. Charlie Rangel of Harlem received $2,000 from GEPAC. He is not in electoral danger, but he is chairman of the tax-writing Ways and Means Committee. Rep. Henry Waxman of Hollywood also doesn’t need GE’s help getting elected, but the $1,000 from GEPAC might make Waxman, who’s chairman of the Commerce Committee, more amenable to a GE-friendly climate bill or health care reform bill.
Of the six House members who have received more than $4,000 from GEPAC this cycle — all Democrats — only Rep. John Murtha, D-Pa., faces a tough re-election next year, thanks to accusations that he has used his chairmanship of the Defense Appropriations subcommittee to benefit donors and patrons. GE is a top defense contractor.
The other top recipients are all safe incumbents in powerful positions: House Speaker Nancy Pelosi, Budget Committee Chairman John Spratt, House Majority Whip Steny Hoyer, Ways and Means member Richard Neal, who chairs the subcommittee on Select Revenue Measures, and key appropriator Norm Dicks.
Flopping Aces notes the power GE has in comparison to some corporations vilified by the left. Halliburton comes to mind:
Democrats used to complain about Halliburton’s influence and profit from government connections during the Bush years. But Halliburton, at #167 on the Fortune 500 list pales in comparison to the impact that #6 G.E. can wield. And if our liberal friends would dispute that then, answer me this: how many news networks does Halliburton own?
General Electric owns NBC, CNBC and MSNBC, all of which are carrying the water for the Administration. This is not how free markets work. This is how government power has corrupted the system. Do I blame GE? Oh yeah, but the fact remains that had the government remained within the constraints of the Constitution, this wouldn’t be possible. It is ultimately the fault of those who advocate government intrusion into the free market.