Free-market populism: Ron Paul says Obama's not 'socialist,' he's 'corporatist'

[Originally posted at Beltway Confidential]

Down at the Southern Republican Leadership Conference, a parade of potential 2012 GOP nominees, plus some other rising stars have addressed what Washington Post blogger Dave Weigel calls "the Republican wing of the tea party movement."

Rep. Ron Paul used the occasion to educate the crowd about the true nature of Obama's economic agenda. The Wall Street Journal reports:

“In the technical sense, in the economic definition, he is not a socialist,” the Texas Republican said to a smattering of applause at the Southern Republican Leadership Conference.

“He’s a corporatist,” Paul quickly added, meaning the president takes “care of corporations and corporations take over and run the country.”

Ron Paul is right. Obama has signed: a health-care bill that mandates we buy private insurance and has the endorsement of the drug industry; a tobacco regulation bill that earned the applause of the largest cigarette company in the country; a credit-card regulation bill that the banks like; a stimulus bill approved by the U.S. Chamber of Commerce and nearly every lobby in the country; a Cash-for-Clunkers bill that subsidized automakers, car-dealers, and more. Also, Obama has a huge corporate lobby on his side for cap-and-trade legislation. Plus, Obama backed the Wall Street bailout, has stuck close to its main authors Ben Bernanke and Tim Geithner, and even expanded the bailout.

I could go on, but the point is not simply that Ron Paul is right about Obama being a corporatist, the relevant point is that a few Republicans are starting to sound the populist note of calling out Obama's closeness with Big Business.

In December, Rep. Paul Ryan (R-Wisc.) wrote an op-ed headlined "Down with Big Business."

Last week, in the Republican response to President Obama's weekly address, Rep. Kevin McCarthy (R-Calif.) attacked Obama's financial regulation primarily because it would "guarantee permanent bailouts for Wall Street."

Ron Paul is also uniquely positioned to tap into the free-market populism notion. He's both the most free-market congressman, and the Chamber of Commerce's least-favorite Republican according to recent voting scorecards.

Down with the Health Insurers

My column today is a letter to conservatives:

Dear conservatives: Health insurance companies are not your friends. Keep opposing a new government-run insurer, a single-payer plan, and new regulations on the HMOs. But grant that Speaker of the House Nancy Pelosi is correct on this: Insurance companies are villains.

Insurance companies lobby for big-government regulations, subsidies, mandates, and tax-code distortions that funnel them money, keep out competition, and stultify innovation. These policies preserve the employer-based health-care system that mocks the idea of free-market competition. Then they cry "unfair competition" when government threatens to encroach on their government-protected monopolies.

But they're not just lobbying against a government option. Today, health insurers are lobbying to force you and me to buy their product or face a tax hike (the individual mandate).

When conservatives go gaga over Big Business

Last week, we saw an unpleasant flap regarding the American Conservative Union and a lobbying effort by FedEx. My column today rebuts some of the Politico's claims but shows how the story points to a deeper problem in the conservative movement and the GOP.

On health care, why are Republicans and conservatives most vehemently battling the government insurance plan and efforts at cost savings, rather than the bills’ tax increases, mandates on private citizens, and subsidies? Why did a recent conservative coalition letter opposing the bills omit opposition to taxpayer funding of abortion?

I suspect donor priorities become activists’ priorities. Of course conservative groups and politicians need to raise money, and Big Business has the big money. But there’s a problem: Big Business’ agenda often entails handouts and regulations that crowd out competitors — witness health care reform, cap and trade, the stimulus, and bailouts.

Is it coincidental that Republicans’ recent major transgressions against the free market — the Wall Street bailout and the Medicare prescription drug benefit — aided Big Business?

Conservative obeisance to business distracts the movement and sacrifices its principles. Even if this dynamic wasn’t behind the ACU-FedEx flap, conservatives should use the episode as inspiration to tell Big Business, “We’re with you as long as you’re for freedom, and we won’t let you set our priorities.”

Read the whole thing here.