Crony Capitalism under Trump 1-3-2017

3, January 2017            Crony Capitalism under Trump

A number of US corporations have adjusted their strategies hoping to gain more favorable treatment under a Trump administration by nourishing his enormous ego.

For example, companies like Sprint seem content allowing Trump to take credit for their decision to hire more workers. Predictably, he tweeted with great gusto boasting that the Sprint CEO would hire 5,000 more workers in the US. Largely ignored is the fact that SoftBank, Sprint’s parent company, made a commitment to invest $50 billion and create 50,000 new jobs in the US in October - before the election. The insecure Trump thanked himself profusely for an increase in a consumer confidence index last month. More grist for ‘Saturday Night Live’.   

What is behind Sprint’s announcement? Softbank is anxious to overcome the Department of Justice and the Federal Communication’s earlier ruling blocking a merger between Sprint and T-Mobile.  Such a merger would cut the wireless companies to three increasing consumer costs but enhancing the profits of Sprint. Thousands of jobs would be shed if the merger were to take place.  This would be crony capitalism with enormous negative impact on the economy and a serious betrayal of many Trump supporters.