FCC Delivers the Latest Dose of Obama Cronyism

It’s Bad for Everyone Else - 

But Why Would the Administration Care?

by Seton Motley, Contributing Author: The huge-er government gets – the greater its ability to deliver cronyism goodies. The bigger the wallet government has – the larger the regulatory hammer it wields – the more Crony Socialism it can dispense.

Remember when President Barack Obama said this?
“We’re going to punish our enemies and reward our friends who stand with us on issues that are important to us.”The Obama Administration is excellent at both. The punishing: IRS Targets Conservative Groups

Obama Administration Targets Fox News Reporter in ‘Chilling’ Echo of AP Probe

Obama Administration Targets Coal with Controversial Emissions Regulations

Obama Closed and Stole Republican Car Dealerships?And the rewarding:80% of DOE Green Energy Loans Went to Obama Backers

How Obama’s Justice Department Selectively Blocked A Merger By Republican CEOs

Obama’s Auto Bailout Was Really a Hefty Union Payoff

US Diplomats Cry Foul as Obama Donors Take Over Top Embassy JobsOften there are moments of Crony Socialist harmonic convergence. When government can reward friends – while simultaneously punishing enemies.

Take, for instance, the Federal Communications Commission (FCC)’s latest auction of spectrum – the airwaves we use for all things wireless.
Big Money in ‘Small’-Business Preferences

DISH Network’s brazen abuse of the Federal Communications Commission’s incentives for small businesses at a recent spectrum auction — to the tune of $3 billion, at taxpayers’ expense — was enough to make even a Dickensian villain squirm….

Using multiple shell companies to qualify for “designated entity ” (DE) discounts, DISH Network effectively shaved off more than $3 billion in payments ….

DE status is reserved for small businesses — not market behemoths like DISH Network.How behemoth is DISH Network? About $34 billion. A little large for DE eligibility.

DE is Huge Government yet again trying to manipulate the marketplace – allegedly for good and noble purposes – and (shocker) failing miserably.
The DE program was created at Congress’s direction more than 20 years ago. It offers qualifying small companies a taxpayer-funded credit equal to 25 percent of the purchase price to help them compete against their larger counterparts when bidding for spectrum.DISH got a heck of a deal I wonder why?The co-founder of broadcasting giant DISH Network was accused in a federal complaint last week of intimidating company executives into making political donations that largely went to Democratic causes.Ahh – that’s why.DISH’s $3B in Auction Discounts ‘Makes a Mockery’ of AWS-3 Auction, FCC Official SaysDon’t get too excited – it was Republican Commissioner Ajit Pai who said that.

When government plays favorites – everyone else loses. When the Leviathan has its giant thumb on the scale – it is anything but fair.

DISH purchased spectrum on the crony cheap – that could have instead gone to any of the many other bidders. Many of whom are vocally opposed to many Administration power grab policies – including its recent Net Neutrality Internet takeover. One of whom – Verizon – successfully sued to undo the last Administration attempt at Net Neutrality imposition.

The Administration rewarding its friends – while punishing its enemies. The Crony Socialist twofer.

It’s way past time for Huge Government to stop trying to micro-manipulate the private sector. The ends never justify the means – and the intended ends are never met.

And it will take a Crony Socialist weapon out of the government’s vast arsenal.

Now that’s a twofer for the better.
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Seton Motley is the President of Less Government and he contributes to ARRA News Service. Please feel free to follow him him on Twitter   /   Facebook.

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