The media too often see Washington battles as Big Business vs Big Government. This is usually not the case. Often it’s Big Business & Big Government vs. Small Business.
Brookings scholar and Clinton, Gore, Mondale advisor William Galston wrote a piece today telling liberals that they need to side with Big Business over small business if they really want to increase the government’s role in the economy. Writing in The New Republic, Galston writes:
The Obama administration will need to recognize the fervent opposition of small businesses to its priorities, while taking advantage of large corporations’ willingness to cooperate.
Galston is exactly correct about the alignment of interests. Big Business tends to do well when government intervenes. Small business dies.
Big Business can afford the added costs of regulations. It can hire up the former senators as its lobbyists to tweak the rules. It can hire the former Food & Drug Administration Commissioners as its lawyers to work around the rules. And it will always get a disproportionate amount of the subsidies.