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Boeing caves

Losing more slowly.

Rather than standing up for its free market rights, Boeing instead chose to cut a deal with Obama’s union goons. The company’s surrender not only gave Big Labor the concessions it was seeking with regard to the company’s expansion plans — more importantly it preserved the NLRB’s ability to use such thuggish tactics in the future against other companies (which Obama signaled he was more than happy to do via his unconstitutional recess appointments to the NLRB).

Why did Boeing cave in the face of such a flagrant violation of its rights?

Perhaps that was the plan from the beginning. Remember Boeing is headquartered in Chicago and its executives gave Obama $197,000 in campaign contributions during his 2008 presidential campaign — five times as much money as the company gave the GOP nominee. Obama also named Boeing CEO Jim McNerney as the head of his Export Council.

In 2010, Boeing received $19.4 billion in government contracts – and in early 2011 it was awarded a $35 billion contract to design and build the Pentagon’s next generation air-refueling tanker. The company has also been cashing in on billions of dollars in subsidies doled out through the U.S. Export-Import Bank (a.k.a. the “Ex-Im Bank”) — a crony capitalist entity that authorizes loans to foreign companies.

Boeing benefited from $8.4 billion in Ex-Im loans in 2009, $6.4 billion in 2010 and $11.4 billion in 2011 — gobbling up the overwhelming majority of the bank’s lending capacity.

Obama and his allies are currently seeking a four-year reauthorization of the Ex-Im Bank that would raise its lending capacity from $100 billion to $140 billion.

While such a reauthorization would clearly benefit Boeing in the short run, it would also give foreign airlines a competitive advantage over domestic carriers. In fact this is already happening — as Delta Airlines was recently forced to cancel one of its international routes because it could no longer compete with a foreign airline that was receiving Ex-Im loans. Not only does such government intervention put American jobs in jeopardy, it means fewer choices and higher prices for consumers.

Of course that’s not stopping Boeing from playing hardball in pursuit of this government handout. Not only has the company hired two of Washington’s most influential lobbying firms to push for the Ex-Im Bank’s reauthorization — its leaders have made it clear that the company will go on the warpath against lawmakers who oppose the measure.

Such union-style intimidation is unfortunate, but at the end of the day it’s not really Boeing’s fault. After all if the federal government wasn’t in the business of artificially manipulating the marketplace by making these loans — then Boeing wouldn’t be flexing its political muscle in an effort to secure their proceeds.

Government intervention is the underlying problem — and we should not expect Boeing (or any other company) to sacrifice its fiduciary responsibility to shareholders on account of a broader allegiance to taxpayers.

In other words, businesses — when faced with business decisions — will serve their own best interests, and if that best interest is learning to operate efficiently and profitably within a crony capitalist system, that’s precisely what it’ll do.

From government to the race pimps demanding their tribute to the eco nutcases demanding impotent (and often counterproductive) concessions that pass costs on to the consumer, market interference from the left continues to increase the costs of doing business.  And pretty so0n, bigger companies like Boeing –recognizing that their ability to pay the tribute puts them in a strong market position — will be happily working hand in glove with the government and its instrumentalities to weaken or destroy its competition.

This is liberal fascism, disguised as the workings of a free marketplace.

And those who end up paying in the end are all of us.

9 Replies to “Boeing caves”

  1. DarthLevin says:

    I’d give up flying, but the TSA pretty much took care of that already.

  2. Ernst Schreiber says:

    Thank God we have SEVERE conservative Mitt Romney on our side.

    Related or not, depending on your priorities.

  3. $63 Million in Incentives got Boeing to Chicago. I can only imagine the back-room wheeling and dealing going on here.

  4. sdferr says:

    Criminal enterprise!

    ARE YOU IN?

    Tell Michelle!

  5. dicentra says:

    Losing more slowly.

    Nah, we’ve lost. This kinda thing shoulda been stood up to decades ago to nip it in the bud, but if it’s to the point where NLRB can bully a company like Boeing into submission, the cancer’s fully metastasized and past stage 4.

    Sweet Meteor of Death 2012

  6. OCBill says:

    “All is proceeding as I have foreseen.” — Ayn Rand

    http://aynrandlexicon.com/lexicon/mixed_economy.html#order_2

    A mixed economy is rule by pressure groups. It is an amoral, institutionalized civil war of special interests and lobbies, all fighting to seize a momentary control of the legislative machinery, to extort some special privilege at one another’s expense by an act of government—i.e., by force. In the absence of individual rights, in the absence of any moral or legal principles, a mixed economy’s only hope to preserve its precarious semblance of order, to restrain the savage, desperately rapacious groups it itself has created, and to prevent the legalized plunder from running over into plain, unlegalized looting of all by all—is compromise; compromise on everything and in every realm—material, spiritual, intellectual—so that no group would step over the line by demanding too much and topple the whole rotted structure. If the game is to continue, nothing can be permitted to remain firm, solid, absolute, untouchable; everything (and everyone) has to be fluid, flexible, indeterminate, approximate. By what standard are anyone’s actions to be guided? By the expediency of any immediate moment.

  7. LTC John says:

    LMC beat me to it – nobody should be surprised at Boeing following the loot – that is how they moved to the superbusinessfriendlytown of Chicagoland, County of Crook, State of Illinois (old motto – “Land of Lincoln”, new motto “will the defendant/governor please rise”).

  8. Squid says:

    …but if it’s to the point where NLRB can bully a company like Boeing into submission, the cancer’s fully metastasized and past stage 4.

    I think the problem isn’t that NLRB can bully Boeing, so much as Boeing showing itself happy to play along with Big Government. I shoulda known that the Carolina thing was just a feint.

  9. […] puts it this way: In other words, businesses — when faced with business decisions — will serve their own best […]

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