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Morning Bell: Fighting Government Cronyism with an Opportunity Agenda
Posted By Matthew Spalding, Ph.D. On February 5, 2013 @ 6:00 am In Energy,First Principles | Comments Disabled
Would you like a raise?
For some workers, cronyism prevents receiving raises in pay. In early 2011, a Giant Eagle supermarket in Edinboro, Pennsylvania, wanted to give wage increases and higher starting wages to 25 employees. But a union wouldn’t let it do so.
Why would a union object to workers receiving higher wages? Because in this case, the increases went to “less senior” employees. The union went to arbitration and won a judgment that Giant Eagle can’t give raises “without first obtaining concurrence from the Union”—and an order to rescind those increases already given.
Today, some employees in Edinboro are earning less than their employer wants to pay them. All because of cronyism in the American economy.
This week Heritage is highlighting our opportunity agenda for conservatives. Our new report, America’s Opportunity for All , makes the case that all workers should be equal. Today we examine how to move from crony bureaucracy to free enterprise.
Yet today’s governing elites try to use government to micromanage the economy and redistribute wealth to even out inequalities . Such policies, however, end up hindering economic growth . Even worse, the expanding size and scope of government, along with its growing class of experts  who are supposed to plan and oversee the regulation of the economy, leads inevitably to administrative favoritism, inequalities based on special interests and undue political influence, and the crony corruption of picking winners and losers. 
Economic growth does not come from some master economic plan managed by the government. It is the result of the decisions and actions of millions of people working, creating, spending, exchanging, and pursuing millions of different avenues of individual opportunity. The best policies are those that encourage the work, savings, and investment that expand the economy and lead to more jobs and higher earnings.
To get us back on the right path, America’s Opportunity lays out detailed plans to:
This is America’s Opportunity: a time to remove arbitrary obstacles to economic markets, break down artificial structures that prevent competition, keep tax rates low, and reduce excessive government spending. This will bring economic growth and prosperity to all Americans.
Matthew Spalding, Ph.D., is Heritage’s vice president for American Studies and director of the B. Kenneth Simon Center for Principles and Politics.
How does cronyism affect your life? Tell us in the comments.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/02/05/freeing-the-economy-getting-the-cronies-out-of-your-way/
URLs in this post:
 America’s Opportunity for All: http://opportunity.heritage.org/
 even out inequalities: http://www.heritage.org/research/reports/2012/09/defending-the-dream-why-income-inequality-does-not-threaten-opportunity
 economic growth: http://blog.heritage.org../../../../../2013/01/31/gdp-fell-in-the-fourth-quarter-of-2012/
 class of experts: http://www.heritage.org/research/reports/2012/04/why-congress-must-confront-the-administrative-state
 crony corruption of picking winners and losers.: http://blog.heritage.org../../../../../2012/09/28/bigger-government-more-cronyism-less-economic-freedom/
 watch the speech online here: http://www.aei.org/events/2013/02/05/making-life-work-remarks-by-majority-leader-eric-cantor/
 new blog: http://www.intercollegiatereview.com/
 ardent pro-life champion: http://www.rollcall.com/news/michael_schwartz_longtime_coburn_staffer_and_anti_abortion_advocate_dies_at-222124-1.html?pos=hln
 you should be skeptical: http://heritageaction.com/2013/01/senate-eyes-violence-against-women-act/
 missed the mandated deadline to submit a budget: http://dailycaller.com/2013/02/04/obama-criticized-for-not-submitting-budget-on-time-again/
 rise of Islamist political movements: http://blog.heritage.org/2013/02/04/responding-to-rising-islamist-movements/
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