Gravy train.(books, arts & manners)(The Big Ripoff: How Big Business and Big Government Steal Your Money)(Book review)

The Big Ripoff: how big business and big government steal your money, by Timothy P. Carney (Wiley, 285 pp., $24.95).

[ILLUSTRATION OMITTED]

THE relationship between business and government is one of the most misunderstood in all of politics. Many people reflexively assume that wealthy corporations conspire with Republicans to cut taxes and loosen regulations. The reality is far different, as close observers of politics know: Big businesses almost always prefer favors to free markets. Hence, big business eagerly works with both parties to ensure a steady stream of narrow tax breaks, subsidies, and countless other forms of corporate welfare. In The Big Ripoff, investigative reporter Timothy P. Carney neatly documents the countless ways big business has succeeded in plundering state and local governments, hurting consumers and taxpayers in the process.

The first part of the book deals with the relationship that wealthy individuals and big business have with fiscally liberal officeholders and the Democratic party. Carney demonstrates that corporate PACs frequently give large donations to Democrats, and even larger donations when Democrats hold political power. Additionally, during the most recent election cycle, nearly all of the multimillion-dollar contributions went to groups that supported Democrats and other liberal causes. Perhaps the most striking illustration of the cozy relationship between big business and the Left is that Barbara Lee, the only member of Congress to vote against military intervention in Afghanistan, receives more in corporate contributions than does Ron Paul, the most libertarian member of Congress.

In subsequent chapters, Carney demonstrates the benefits business reaps from these big contributions. He shows, for example, how large donations to both parties from the agribusiness Archer Daniels Midland keep federal ethanol subsidies flowing. Another culprit is Enron, which--despite its frequent proclamations in favor of free markets--eagerly supported regulation in California and elsewhere that benefited Enron at the expense of its competitors.

Even the famous 1997 tobacco settlement is an example of this unhealthy relationship--because it ended up being a boon to big tobacco. Even though the tobacco companies had to reimburse millions in state Medicaid funds, the settlement prevented smaller tobacco companies from charging lower prices than the tobacco giants.

Similarly, General Motors supported the stricter emissions standards of the 1970 Clean Air Act because it had done more research on reducing emissions and could better afford the mandate. ...