Not All the News from Connecticut is Good
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Another example of the false god of federalism:
First, as I mentioned, is the false god of federalism. With all due respect, who the heck is this pipsqueak politician to interfere with national, indeed multinational, corporations in this manner? It's one thing to say "If you want to do business in the State of Connecticut then you must abide by such-and-such rules." But, just as "what happens in Vegas stays in Vegas," so too ought things happening outside of Connecticut to fall outside the purview of Connecticut politicians.
Second we have the Politics of the Warm Fuzzy Feeling. This local hack politician is threatening to block this merger if MetLife cuts jobs. But what's to stop MetLife from cutting jobs one way or the other? Or does he think that, since it might be prohibitively expensive for MetLife to pack up and move, that it faces an "inelasticity of politics" and will remain in the state regardless of whatever restrictions are placed on it? Or is this politician instead merely pandering to his base -- "See how I took on the big bad insurance company?"
Third we have a variation of what I have called "Reverse Poletown." In short, while all eyes are focused on whether the Supreme Court will curb the atrocities being committed in the name of "eminent domain," we continue to see not only the confiscation, but also the strangling, of private property: "Well, we might not condemn your property, but we'll just limit what you can do with it..." In this context: "We'll graciously allow you the privilege of employing people in this state, but once you do, you will not be allowed to disemploy them without being punished. Once you hire, we will not let you lay off."
And you thought labor unions were bad.
And did you catch that part about requiring MetLife to continue to fund "cultural, civic and charitable causes in Hartford and surrounding communities"? All of which, of course are, or were, voluntary. I can think of a term for that threat: protection money. I can think of another term for that threat: extortion. I can think of still another term for that threat: bribery.
And you thought the mafia was bad.
Some may remember the (entirely correct) indignation felt by many when the European Union blocked General Electric's acquisition of Honeywell (Europe's target nowadays is of course Microsoft). How is this any different, except in terms of sheer ridiculousness? Indeed, even if one is misguided enough to believe in the "benefits" of antitrust, this doesn't even qualify under those strictures. This local hack politician isn't trying to block this merger out of concern for market power, but merely to preserve a local boondoggle. The rest of the country, meanwhile, can pound salt.
And you thought Europe was bad.
I should disclose that this news story ran on Wednesday. In the days since, the local hack politician has withdrawn his threat to intervene, but only after MetLife capitulated and promised not to cut so many jobs so quickly.
I predict that we will soon see an explosion of similar state attorney general interventions in their respective states' economies. We now have fifty petty, puny Eliot Spitzers who have seen the potential of the new Politics of "Or Else" -- do what I say...or else. Pander to my political whim...or else. Make me look like the winner...or else. Give me a future sound bite for when I run for governor, or senator, or whatever...or else.
Remind me again why federalism is a good thing?
Connecticut's attorney general on Wednesday said he will oppose MetLife Inc.'s $11.5 billion purchase of Travelers Life & Annuity from Citigroup Inc., saying the deal would take almost 800 jobs from his state.Amazing. Here we have a hat trick of political nonsense.
"This acquisition is against the public interest because it will destroy jobs, damage our economy and disadvantage families," Attorney General Richard Blumenthal said.
Blumenthal said he will intervene in the state Department of Insurance approval proceedings, adding that the public interest is a key criterion for approval by that department.
...
Blumenthal is also urging the department to withhold approval unless MetLife agreed to maintain Travelers' financial commitments to cultural, civic and charitable causes in Hartford and surrounding communities.
A MetLife representative declined to comment on the attorney general's action and said the insurer is confident the deal will be approved.
First, as I mentioned, is the false god of federalism. With all due respect, who the heck is this pipsqueak politician to interfere with national, indeed multinational, corporations in this manner? It's one thing to say "If you want to do business in the State of Connecticut then you must abide by such-and-such rules." But, just as "what happens in Vegas stays in Vegas," so too ought things happening outside of Connecticut to fall outside the purview of Connecticut politicians.
Second we have the Politics of the Warm Fuzzy Feeling. This local hack politician is threatening to block this merger if MetLife cuts jobs. But what's to stop MetLife from cutting jobs one way or the other? Or does he think that, since it might be prohibitively expensive for MetLife to pack up and move, that it faces an "inelasticity of politics" and will remain in the state regardless of whatever restrictions are placed on it? Or is this politician instead merely pandering to his base -- "See how I took on the big bad insurance company?"
Third we have a variation of what I have called "Reverse Poletown." In short, while all eyes are focused on whether the Supreme Court will curb the atrocities being committed in the name of "eminent domain," we continue to see not only the confiscation, but also the strangling, of private property: "Well, we might not condemn your property, but we'll just limit what you can do with it..." In this context: "We'll graciously allow you the privilege of employing people in this state, but once you do, you will not be allowed to disemploy them without being punished. Once you hire, we will not let you lay off."
And you thought labor unions were bad.
And did you catch that part about requiring MetLife to continue to fund "cultural, civic and charitable causes in Hartford and surrounding communities"? All of which, of course are, or were, voluntary. I can think of a term for that threat: protection money. I can think of another term for that threat: extortion. I can think of still another term for that threat: bribery.
And you thought the mafia was bad.
Some may remember the (entirely correct) indignation felt by many when the European Union blocked General Electric's acquisition of Honeywell (Europe's target nowadays is of course Microsoft). How is this any different, except in terms of sheer ridiculousness? Indeed, even if one is misguided enough to believe in the "benefits" of antitrust, this doesn't even qualify under those strictures. This local hack politician isn't trying to block this merger out of concern for market power, but merely to preserve a local boondoggle. The rest of the country, meanwhile, can pound salt.
And you thought Europe was bad.
I should disclose that this news story ran on Wednesday. In the days since, the local hack politician has withdrawn his threat to intervene, but only after MetLife capitulated and promised not to cut so many jobs so quickly.
I predict that we will soon see an explosion of similar state attorney general interventions in their respective states' economies. We now have fifty petty, puny Eliot Spitzers who have seen the potential of the new Politics of "Or Else" -- do what I say...or else. Pander to my political whim...or else. Make me look like the winner...or else. Give me a future sound bite for when I run for governor, or senator, or whatever...or else.
Remind me again why federalism is a good thing?
Posted by KipEsquire on
16 April 2005
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