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Corporate Socialism


Obama and CEO announcing a dealThe fascist model embraces state control of industry while maintaining private ownership of industry. Favorite corporations are allowed favored treatment under the rules. Granting special status—and the profits that follow—is the major means by which government gets corporate management to go along.

It works like this:

Last month, the Obama EPA began enforcing new rules regulating the greenhouse gas emissions from any new or expanded power plants. This week, the EPA issued its first exemption, Environment & Energy News reports:

The Obama administration will spare a stalled power plant project in California from the newest federal limits on greenhouse gases and conventional air pollution, U.S. EPA says in a new court filing that marks a policy shift in the face of industry groups and Republicans accusing the agency of holding up construction of large industrial facilities.

According to a declaration by air chief Gina McCarthy, officials reviewed EPA policies and decided it was appropriate to "grandfather" projects such as the Avenal Power Center, a proposed 600-megawatt power plant in the San Joaquin Valley, so they are exempted from rules such as new air quality standards for smog-forming nitrogen dioxide (NO2).

There's something interesting about the Avenal Power Center:

The proposed Avenal Energy project will be a combined-cycle generating plant consisting of two natural gas-fired General Electric 7FA Gas Turbines with Heat Recovery Steam Generators (HRSG) and one General Electric Steam Turbine.

Maybe GE CEO Jeff Immelt's closeness to President Obama, and his broad support for Obama's agenda, had nothing to do with this exemption.

Yeah, and the stupid lightbulb mandate that Bush signed wasn’t also a grant to GE, a primary manufacturer of compact fluorescents. That may have been crony capitalism, just as the Progressives asserted. But when crony capitalism is broadened and deepened, it becomes fascism.

Heil Barry!

H/T: Maggie’s Farm


Coyote posts about another favor to GE. This time in the form of a cash handout, followed by price supports under the product to be produced:

a $1.9 billion installation of 338 General Electric turbines. Combining the stimulus and other federal and state subsidies, the total taxpayer cost is about $1.2 billion, while sponsors GE and Caithness Energy LLC had invested equity of merely about 11%. The memo also notes the wind farm could sell power at “above-market rates” because of Oregon’s renewable portfolio standard mandate…

It’s not fair for me to pin Oregon’s mandate on Barry. But Federal “clean energy” mandate has been on his wish list since he was just a junior Senator.