Republicans once blasted 'crony capitalism.' Now it's the plan.
Just more than a dozen years ago, Republicans' talking point was that the president of the United States should not have promoted a politically connected but troubled company.
When Barack Obama ran for re-election in 2012, GOP lawmakers seized on the catchphrase "crony capitalism" to bash him for giving a speech to workers at a solar panel manufacturing plant run by Solyndra, which had received a loan guarantee under his economic stimulus program.
After the company went bankrupt, Republicans argued that records showed the loan guarantee was rushed (true) and the company was backed by Obama donors (mostly false).
Now, in President Donald Trump's administration, crony capitalism isn't an attack line; it's the plan.
On Tuesday, Trump sidled up to a shiny red Tesla Model S in front of the White House, clutching a handwritten note that said you could drive off in one today for 'as low as $299/month.' The goal was to boost the company run by his biggest donor, billionaire federal contractor and special government employee Elon Musk, after its stock dramatically collapsed because of an ongoing boycott, uncertainty from Trump's trade wars and poor sales of its ungainly Cybertruck.
Trump even wrote a check right there for the $80,000 car and said he would buy one for his 17-year-old granddaughter.
If a social media influencer had posted a video like this, the Federal Trade Commission might require it to come with the hashtag #sponsored and an admission that it was a paid promotion. This was "sponcon" on the White House lawn, to use the shorthand term for sponsored content. And it was crony capitalism for the richest person on the planet, whose wealth happens to be tied up in Tesla stock.
To be clear, presidents have long promoted American businesses. Teddy Roosevelt supposedly coined the Maxwell House ad slogan "good to the last drop" after having a cup, and Joe Biden once took a Ford F-150 Lightning for a spin, saying "this sucker's quick." (Sadly, the Ford Motor Co. did not pick that up as a slogan.)
But neither Maxwell House nor Ford executives worked in the White House. Neither made massive donations to a presidential campaign. Trump was trying to help his top political ally by using the White House as a backdrop for free advertising, like some President's Day car sale come to life.
In fact, the closest precedent in U.S. history comes from Trump's first term, when he posted a photo giving two thumbs up from the Resolute Desk in the Oval Office with cans of Goya beans and other products in front of him. In that case, too, the president was trying to boost a company facing a boycott over its association with him, as Goya's CEO was in hot water for having praised Trump.
At least in that case, we know that Trump actually likes taco bowls. But this week's commercial for Tesla came after years of bashing electric cars, which he has said will leave you stranded in the desert, "cost a fortune" and are only "good if you have a towing company." He'd even specifically lambasted Teslas in the past, saying they "don't drive long enough" and the self-driving options "crash."
Beyond just the cheap sales pitch, Trump had some chilling words that portend an even more serious effort to shore up Tesla. During the event, Trump ramped up his response to the spate of vandalism against Teslas in recent weeks, saying that "violence against Tesla dealership will be labeled as domestic terrorism" and that any vandals who are caught are "going to go through hell" for "harming a great American company."
And in a Truth Social post Tuesday, Trump said that "radical left lunatics" are "illegally and collusively" boycotting Tesla.
In Trump's first administration, his staffers would have interpreted these comments as hot air. In his second, they're far more likely to treat them as marching orders. His hyperpartisan acting U.S. attorney in D.C. has already threatened a private university for its diversity policies and a U.S. senator for a mildly inappropriate comment made years ago. And Trump now has a Justice Department that he hopes to turn into his own personal law firm.
For now, it is still legal to exercise your First Amendment right to protest Tesla or simply refuse to buy its products. Ill-advised vandals will still be charged with misdemeanors in state court, not federal felonies that can carry a sentence of up to life in prison. And Tesla is still a private company that just happens to be owned by the president's BFF, not the recipient of its own massive federal contract.
But we'll see how long that lasts, and whether any Republicans who lambasted Obama's supposed "crony capitalism" want to stop the real version that's happening right in front of them.
This article was originally published on MSNBC.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Charting the Global Economy: Consumer Spending Weakens in US
(Bloomberg) -- US consumers are growing tired, according to fresh data that showed cutbacks in spending on big-ticket goods and services, extending a first-quarter demand slowdown. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown Inflation-adjusted consumer spending dropped last month by the most since January. Americans also stepped back from the housing market as new-home sales slid by the most in three years. At the same time, Federal Reserve policymakers indicated they're in little rush to lower interest rates. In the euro area, business activity barely grew amid lingering uncertainty related to US tariffs and geopolitics. Meantime, profits at Chinese industrial firms sagged as the country battles deflationary forces. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: US Consumer spending declined in May by the most since the start of the year, indicating elevated uncertainty around the Trump administration's economic policies is increasingly weighing on the outlook for growth. The latest figures suggest sluggish household demand, especially for services, extended into May after the weakest quarter for personal consumption since the onset of the pandemic. A flurry of Federal Reserve officials this week made clear they'll need a few more months to gain confidence that tariff-driven price hikes won't raise inflation in a persistent way. Fed Governors Christopher Waller and Michelle Bowman captured attention in the past week when they signaled they'd be open to lowering rates as soon as the Fed's July 29-30 meeting if inflation remains contained. New-home sales fell 13.7% in May, the most in almost three years, as rampant incentives from builders fell short of alleviating affordability constraints. The latest results show homebuilders are sitting on rising inventories amid mounting economic challenges, including mortgage rates stuck near 7%, higher materials costs due to tariffs and a slowing labor market. Europe German companies are the most upbeat about the economy in more than two years as an imminent boost to public spending outweighs concerns over US tariffs and wars in the Middle East and Ukraine. The euro area's private sector barely grew in June, remaining in limbo as erratic US trade policy and geopolitical conflicts leave companies in the dark on what's next. Surging grocery bills are threatening to slow the pace of the Bank of England's interest-rate cuts by raising the risk that inflation will stay elevated even as the UK economy shows signs of sputtering. The prices of staples including butter, beef and chocolate in May were up nearly 20% from a year earlier, contributing to the biggest annual jump in overall food prices since February 2024. Asia China's industrial firms saw their profits drop the most since October, illustrating weakness in an economy strained by higher US tariffs and lingering deflationary pressure. Industrial profits fell 9.1% in May from a year earlier. The deterioration bodes ill for business confidence and could make companies more reluctant to invest and hire. Apartment rents in Tokyo are rising at the fastest pace in 30 years in the latest sign for the Bank of Japan that the nation's inflation trend is spreading deeper through the economy. Rents in the capital climbed 1.3% from a year earlier in April and May for the largest gains since 1994, according to the Ministry of Internal Affairs. Emerging Markets Mexico's central bank again cut its benchmark interest rate by half a percentage point but it opened the door to smaller cuts going forward as policymakers worry the economy will continue to suffer headwinds after barely avoiding tipping into recession earlier this year. World In addition to Mexico's policy decision, central bankers in Paraguay, Morocco, Hungary, Thailand, Czech Republic, Guatemala, and Colombia all kept interest rates unchanged. --With assistance from Irina Anghel, Matthew Boesler, John Liu, Catarina Saraiva, Michael Sasso, Zoe Schneeweiss, Mark Schroers, Fran Wang, Alexander Weber and Erica Yokoyama. America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Apple Test-Drives Big-Screen Movie Strategy With F1 ©2025 Bloomberg L.P.
Yahoo
28 minutes ago
- Yahoo
Senate Unveils New Trump Tax Draft With Plans to Vote Soon
(Bloomberg) -- Senate Republicans unveiled a new version of their $4.2 trillion tax cut package, moving closer to a vote as they near a July 4 deadline set by President Donald Trump. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown The new draft reflects compromises among warring factions of the Senate GOP which has been divided over how much to cut safety-net programs such as Medicaid and how rapidly to phase out of renewable energy tax credits enacted under the Biden administration. A tentative deal with House Republicans to increase the state and local tax deduction is included. The bill would raise the SALT deduction cap from $10,000 to $40,000 for five years before snapping back to the $10,000 level. The new cap applies to 2025 and rises 1% in subsequent years. Republicans plan to start voting on the tax bill Saturday with final votes coming as soon as early Sunday. Party leaders plan to bring House members back to Washington early next week for what they hope will be final approval of the measure in time for Trump's Independence Day deadline. It is not yet clear if the 50 Senate Republicans needed to pass the bill are all on board. The bill can be further altered on the Senate floor to secure the votes if needed. The House could make more changes if Speaker Mike Johnson has trouble corralling votes for the measure. To win over moderate Republicans, the bill would create a new $25 billion rural hospital fund aimed at helping some Medicaid providers avoid cuts. Republican Senator Susan Collins of Maine, however, had demanded a $100 billion fund. Moderate Republicans also won a delay from 2031 to 2032 for when a new 3.5% cap on state Medicaid provider taxes takes effect. The provider tax is a gimmick by which states boost their federal Medicaid reimbursement rates and many states have come to rely on the practice. Another change in the measure is that a tax credit for hydrogen production wouldn't be phased out until 2028 for projects that begin construction before then. Previous version ended the credit after 2025. The measure would avert a US payment default as soon as August by raising the debt ceiling by $5 trillion. --With assistance from Ari Natter and Mike Dorning. (Updates with details of bill starting in third paragraph) America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Apple Test-Drives Big-Screen Movie Strategy With F1 ©2025 Bloomberg L.P.
Hamilton Spectator
34 minutes ago
- Hamilton Spectator
Donald Trump says he's cutting off trade talks with Canada over Ottawa's digital tax
OTTAWA — U.S. President Donald Trump said Friday that he is cutting off all trade talks with Canada over the federal government's digital services tax that would impact American tech giants, calling it a 'blatant attack' on the United States. Trump announced his plan to end trade talks in a social media post Friday afternoon, less than two weeks after he agreed with Prime Minister Mark Carney at the G7 summit on June 16 to work toward a deal to end the ongoing trade war within 30 days . 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump's post said. 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.' The Prime Minister's Office responded later Friday afternoon with a short statement that did not mention the digital services tax and expressed Canada's desire to continue the trade talks. 'The Canadian government will continue to engage in these complex negotiations with the United States in the best interest of Canadian workers and businesses,' the statement said. Finance Minister François-Philippe Champagne said as recently as two weeks ago that Ottawa would press ahead with the tax, which is set to start collecting money on Monday. Prime Minister Mark Carney comments moments after U.S. President Donald Trump said that he was "terminating all discussions on trade with Canada" and threatened new tariffs over Ottawa's plans to push ahead with a digital services tax. Carney called the negotiations "complex." (June 27, 2025 / The Canadian Press) On social media, Conservative Leader Pierre Poilievre said he was disappointed to hear that trade talks have halted, and that he hopes they resume quickly. He also did not name the digital services tax, but pointed to changes his party has long argued will improve the Canadian economy, including the repeal of the existing federal project assessment regime and industrial carbon pricing. 'As always, Conservatives are ready to help get a good deal for Canada,' Poilievre's statement said. 'We must put Canada first.' Under Trump, the U.S. has imposed a series of tariffs on Canadian steel, aluminum, autos and other goods that Canada views as illegal and unjustified. Ottawa has responded with a raft of counter-tariffs in a trade war that Carney vowed during the spring campaign to 'win.' The prime minister has since embarked on talks with Trump, which Carney said are designed to renegotiate Canada's trade and security relationship with the economic and military juggernaut to the south. Flavio Volpe, president of the Automotive Parts Manufacturers' Association, was part of the prime minister's Canada-U.S. council that met virtually on Friday, just as Trump declared he would terminate trade talks. In an interview with the Star, Volpe said he remains cautiously optimistic, and that surprising twists have become an expectation since Trump returned to the White House in January. 'Is this a pressure moment in a negotiation, or is it really the end of the conversation? I don't know. But you know who does know? Donald Trump, who is, in this style of negotiation, a master,' Volpe said. 'Because the prime minister and the president are in direct communication, and have been for the last couple months, I will save my panic for … if the PM suggests we should panic.' Brian Clow, a former deputy chief of staff and senior adviser to prime minister Justin Trudeau, told the Star that it's not surprising Trump would target the tax, which was a trade irritant when Joe Biden was president as well. He urged the Carney government to stay calm and keep trying to talk to its American counterparts. He also said the government should not consider dropping the digital services tax unless the move is part of a broader trade deal with the Trump administration. 'To a certain extent, what we just saw from Donald Trump is exactly from his playbook. We've seen it so many times before,' Clow said. 'This is how he negotiates. He negotiates by threat, attempting to intimidate to yield more concessions from Canada. This is just a part of how it works and they've got to keep talking and hopefully come to some sort of deal.' The trade war has rattled businesses and workers across the country, with layoffs at auto plants and steel factory shutdowns in recent weeks. Trump doubled his steel and aluminum tariffs to 50 per cent against Canada on June 4, arguing the tariffs are needed to protect and promote a key American industry, as his broader policy of tariffs is designed to raise government revenues and overcome what the U.S. president argues is unfair commercial relations for his country. The Liberal government has long planned to impose a tax on digital services, which Trump views as an unfair trade practice that will hit American companies like Google and Meta. In his social media post Friday, Trump alluded to how the European Union is planning a similar digital services tax, and said Canada was 'copying' the bloc of states with 'a direct and blatant attack on our Country.' On Thursday, U.S. Treasury Secretary Scott Bessent announced that the G7 — a group of rich democracies that includes Canada — agreed to exempt American companies from certain taxes. In return, the Trump administration would remove a so-called 'revenge tax' from a sweeping bill in the U.S. Congress, which would have imposed taxes on investments from countries the U.S. deemed to be treating American firms unfairly. President Donald Trump said he's immediately suspending trade talks with Canada over its plans to continue with its tax on technology firms. Trump said the Canadians was sticking to its plan to impose the tax set to take effect Monday. (AP Video / June 27, 2025) Neither the PMO nor Champagne's office responded Friday when asked if that deal impacted Canada's digital services tax. The policy, enacted in 2024's Digital Services Tax Act , imposed a three per cent tax on revenue earned from online marketing and advertising, social media and some sales of user data. The tax applies to domestic and foreign businesses that reap more than $1.1 billion in global revenue and earn more than $20 million of revenue within Canada in a given year. The Liberals promised to introduce the tax in 2019, and argued hiking tax on big companies could help pay for social services and other public investments to spur the economy. The independent Parliamentary Budget Officer reported in 2023 that the tax would raise about $1.2 billion per year in government revenues. In a written statement Friday, the head of the Business Council of Canada said it has warned the government for the past three years that the digital services tax 'could risk undermining' Canada's economic relationship with the U.S. Goldy Hyder called on Canada to immediately propose to eliminate the tax, in exchange for the removal of American tariffs on Canadian goods. Catherine Cobden, president and chief executive officer of the Canadian Steel Producers Association, said Friday that trade relations are so unpredictable and uncertain with the U.S. that even a new deal to remove current tariffs can no longer be seen as a guarantee. She called for stronger measures to encourage using domestically produced steel in Canada, and other steps to protect the sector. 'We are really under attack by the United States, so we are rapidly pivoting away from that market,' she said. Another business group that has opposed the digital services tax, the Canadian Chamber of Commerce, said Friday that 'surprises' should be expected in negotiations. 'The tone and tenor of talks has improved in recent months, and we hope to see progress continue,' said the chamber's president, Candace Laing. 'We respect that Team Canada is conducting these negotiations at the table, and we need to give them the space to navigate.'
