The FCC Delivers the Latest Dose of Obama Cronyism

The FCC Delivers the Latest Dose of Obama Cronyism
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 Jobs
Often 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. Don’t get too excited – it was Republican Commissioner Ajit Pai who said that.
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