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"If You Know What I Mean": The Crony Capitalism of Sarah Palin

Posted: 06/15/2012 5:08 pm

Over the past several months, former Alaska governor and Fox News commentator Sarah Palin has been making a variety of references to "crony capitalism," which she has defined, rather loosely, as "the growing collaboration between big business, big finance, big government and big union bosses." Later on she characterized it as a system "favoring the politically connected."

She first invoked the term "corporate crony capitalism" during a speech at a Tea Party gathering last September in Iowa, where many had assumed she would announce her candidacy for president. While the announcement never came -- Palin clearly lacked the organizational structure to participate in the GOP sweepstakes -- Palin has continued with the mantra.

Just last month, in an appearance with her resident sycophant at Fox News, Greta Van Susteren, Palin charged President Obama with conducting "crony capitalism on steroids" for his administration's execution of provisions mandated by the Affordable Care Act.

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Palin has long been adept at launching simple catch phrases and symbols like "death panels," "common sense conservativism," "drill, baby, drill," "blood libels," and "mama grizzlies" -- I call them her memes du jour -- all of which routinely generate Palin rounds of media attention, only to be discarded by her when the next, brighter one comes along.

As with many of these Palin catch phrases, there's often more alliteration than substance attached to her rhetoric. In the case of Palin's cries of "crony capitalism," there is also no small amount of hypocrisy. The fact of the matter is that Sarah Palin engaged in "crony capitalism" for much of her political career in Alaska, as both mayor and governor.

Never was this more true than when she pushed through the Alaska Gasline Inducement Act (AGIA), a piece of legislation that she has repeatedly touted (and distorted) ever since she was selected by John McCain as the Republican vice-presidential nominee in the summer of 2008. If there ever was a work of "crony capitalism," Palin's "signature" work of legislation certainly fits the bill.

AGIA provided Palin with the authority to issue a state license for the construction of a 1,715-mile, $40 billion gas pipeline from Prudhoe Bay to a distribution hub in western Canada, replete with a fat $500 million subsidy from the State of Alaska. Talk about fiscal steroids.

In fact, Palin and her administration slanted the selection process for building the pipeline so that only one company -- TransCanada Corp. -- had their bid accepted on the project. Four others were deemed "noncompliant."

TransCanada had direct ties to her administration. The head of Palin's so-called Pipeline Team -- Marty Rutherford -- had previously served as a lobbyist for Foothills Pipe Line Alaska, Inc., a subsidiary of TransCanada. Rutherford's former partner at her Jade North lobbying firm, Patricia Bielawski, served as TransCanada's lead lobbyist in securing the deal. A former TransCanada executive, Patrick Anderson, also served as an outside consultant for the Palin pipeline team.

Moreover, according to an investigation conducted by the Associated Press in October of 2008, "Despite promises and legal guidance not to talk directly with potential bidders, Palin had meetings or phone calls with nearly every major candidate, including TransCanada."

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When a large batch of Palin emails was released last year, the mainstream media essentially gave Palin a free pass on their content. It was a case of journalistic malfeasance. Not only were significant portions of the Palin email cache shamefully withheld or redacted, reporters unfamiliar with the details and nuances of Palin's career didn't understand the complex references and political contexts of many of her communications.

One of my favorite Palin email threads involves Palin's courting of TransCanada in June of 2008, less than three months before she signed an agreement with the Canadian company. The thread reveals Palin trying to assemble a group numbering nearly two-dozen of her advisors, legislators and TransCanada officials for an under-the-radar feast featuring a prized Alaskan salmon.

While some of the thread was redacted over claims of "privileged" or "personal" content, the communications nonetheless reveal Palin's particular brand of cronyism vis-a-vis TransCanada.

Nearly all of the key players on Palin's pipeline team -- including Rutherford -- along with her controversial spokesperson Meg Stapleton and her so-called "hatchet man," Frank Bailey, were included in the thread. With the subject line "Copper River King Arrived," Palin's administrative assistant Janice Mason announced that: "The Copper River King 30 lbs. just arrived at the house (fresh). They have put it in the refrigerator."

This was big news in the Alaska State House. Little more than ten minutes later, Palin responded:

Cool. We should cook it for whomever needs to have that get-together/reception opportunity tonight, tomorrow, or Wednesday. I'll let AGIA folks know the fish is a good opportunity to have folks over for informal gasline chat.

State lawyers, according to the AP, had advised members of the Palin administration "to keep their distance" from potential bidders, while bidders were advised "to submit questions on a public website." That didn't stop Palin. After a few emails from staff indicating the "sooner the better" for the salmon feast, Palin responded again:

Tonight's great for Todd and me -- now these type of events can be quite informal and still be successful. There's a Costco in Juneau, if you know what I mean. And my family is quite capable of setting out food and cleaning up afterwards.


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The verbiage was classic Palin, and so was the overt cronyism. Palin had filled her administration with longtime friends, campaign workers, lobbyists and business associates. And in spite of legal advice to the contrary, Palin continued to engage in "informal" discussions with TransCanada. She actually signed the agreement with them on August 29, 2008 -- just before flying off to her first meet-and-greet with McCain at his family compound in Arizona, where he first offered Palin the second spot on the GOP ticket.

During her debut acceptance speech at the Republican National Convention the following month, Palin claimed that TransCanada was already "building" the pipeline, while in her widely-watched debate with Joe Biden, she declared that "we began" to build the pipeline, in both instances implying that it was already under construction.

It was not--and the simple fact of the matter is that four years later, construction of the pipeline has yet to commence. It will likely never be built, and certainly not in the configuration proposed by Palin and her cohorts. But TransCanada will still receive its $500 million subsidy.

Corporate cronyism on steroids? More like corporate cronyism on Wasilla meth.

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Award-winning writer and filmmaker Geoffrey Dunn's best-selling The Lies of Sarah Palin: The Untold Story Behind Her Relentless Quest for Power was published by Macmllan/St. Martin's in May of 2011.

 
 
 
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Over the past several months, former Alaska governor and Fox News commentator Sarah Palin has been making a variety of references to "crony capitalism," which she has defined, rather loosely, as "the ...
Over the past several months, former Alaska governor and Fox News commentator Sarah Palin has been making a variety of references to "crony capitalism," which she has defined, rather loosely, as "the ...
 
 
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HUFFPOST SUPER USER
shilparules
08:54 AM on 06/20/2012
Attempting to impugn the integrity of Gov. Sarah Palin is an exercise in futility. Her honesty, veracity, & sincerity are unassailable.
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lilkitten22
Be the change that you wish to see in the world
06:02 PM on 06/19/2012
I don't understand why anyone likes this woman :s
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HUFFPOST SUPER USER
Randy Hauser
02:33 PM on 06/18/2012
Kim Kardashian is more relevant to the national debate than the half term governor. Plus her reality show wasn't cancelled.
02:33 PM on 06/18/2012
Thanks for continuing to report on the real Palin. I was frustrated by the lack of substantial reportage on what those emails actually revealed about the way she ran the state government. What happened with TransCanada was the worst but not the only example of her cronyism.

Dairygate deserved greater scrutiny, for one. She also installed a family friend in the Department of Fish and Game whose greatest attribute was his connection to her parents and to the predator-control special interests. He resigned after being charged and subsequently convicted of illegal hunting.

Most of the people she plucked from her roster of childhood friends to serve in her government were as incompetent, corrupt, and self-serving as she was. We're still paying the consequences.
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HUFFPOST BLOGGER
Geoffrey Dunn
05:25 PM on 06/18/2012
Dairygate is still on my Huffington Post bucket list. Promise.

So many lies, so little time.
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HUFFPOST SUPER USER
TheDarklady
07:35 PM on 06/18/2012
She must be nervous about it, because a year or two back, one of the principals in the Dairygate fiasco signed up for my Yahoo Group and lurked for a while before jumping on me for my Palin views, tossing around some vague insults and claims, and then unsubscribing.

It was the weirdest thing and only served to fuel my interest in this strange woman and her corrosive cult of personality.
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HUFFPOST SUPER USER
eva belle
Kolob a-calling
12:31 PM on 06/18/2012
The lying liar that Palin is.
whinenot
Actions speak louder than words.
11:39 AM on 06/18/2012
Poor Greta just continues to demean herself and any shreads of dignity she may have left by continuing to be a 'crony' of Sister Sarah. It is simply amazing at how uttlerly low Greta has fallen.
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HUFFPOST SUPER USER
MyAudacity
It is not okay
11:54 PM on 06/17/2012
But TransCanada will still receive its $500 million subsidy.

It's amazing we see articles about Silly Sarah making fun of the President, I wonder if she is trying to distract or deflect from this article. If a company is getting that much money for doing nothing, then who all is getting the money, and where is the subsidy money coming from?
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Facial Tic 2
We The People refudiate, doggonnit!
09:23 PM on 06/17/2012
Doggonit, youbetcha I spend many hours of valuated time and energy on thinkin up these catch-phrases and whippersnappers that get put on out there through my facebooks and other devices plus even the lame-stream medias and so forth which quotate me to make sure that the real Americans across there along this great country among the way can valuate the situations durin this wonderful continent that I pass through atop my One Notion bus tours when I do the talkspeeches throughout this land, to be facin head-on the upcomin and frightenin elections that quite frankly are shockingly comin round to be voted upon soon which is so very timely in that we were doing them with Jomcain the Mavrik and Joe the Plumber and others back then in those hopes that were crumbled upon unfortunately when we did not win our fight for the road to the path to the office of the White House situation followin in our forefathers footprints that we set out to step onto and take charge of so that I could get on in there to be in charge of the Senate and get in there and legislate with them which we did not have a chance to do at that time for the nation and our futures.
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HUFFPOST SUPER USER
Wonderfull
Consulting commenter.
08:38 AM on 06/18/2012
LOL... Tina Fey, is that you??
This user has chosen to opt out of the Badges program
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03:37 PM on 06/19/2012
Damn you are good. Laughter in every sentence and her absolute lack of logic to a TEA.
HUFFPOST SUPER USER
katter47
08:51 PM on 06/17/2012
I love this woman! She is a walking, talking parody of herself. "“It really doesn’t do any good to personally complain about… these lamestream media lies,”
Then she proceeds to complain about them. Classic Palin!
What is truly puzzling is that her followers are blind to her profiteering, power hungry, incessant self-promotion.
Got to give it to her though. Thanks to a total lack of vetting on McCain's part, this 3rd rate politician (who resigned mid-term as governor) has made millions off of her moment in the spotlight.
I'd say she is permanently locked in the "beauty pageant mentality", but most of the beauty queen candidates are better informed and and answer questions more intelligently.
This user has chosen to opt out of the Badges program
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02:36 AM on 06/18/2012
She reminds me of that poor girl from South Carolina who tried to explain why h.s. students needed a better education in geography. More importantly, where does Palin stand on the issue of "Pretty Woman" as positive portrayal of women in movies?
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HUFFPOST SUPER USER
TheDarklady
07:40 PM on 06/18/2012
And the way she demands that Obama be better "vetted," while she's received such a pass on her many spectacular sins and peccadilloes... she holds a grudge more than she does anything else (except seek revenge on the target of her grudge). I don't think I've ever encountered such a non-self-aware person and certainly not at such a high and public level. Has she ever done a genuine self-inventory or is she just perpetually on "react" mode?

As someone who actually did study journalism in college, I'd love to see her diploma. She's always real vague about it, what it's for, when she got it... education doesn't seem to have a high priority in the Palin household. No wonder the family shows no signs of providing Trig with any of the intensive early-life therapy he needs to achieve his potential.
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Gestas
Mountain Man
07:31 PM on 06/17/2012
Take it easy on Sarah...She has no idea what She's talking about.
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OkhamsRazzor
The meaning of life is to give life meaning
05:39 PM on 06/17/2012
===Sarah Palin has been making a variety of references to "crony capitalism," which she has defined, rather loosely, as "the growing collaboration between big business, big finance, big government and big union bosses." Later on she characterized it as a system "favoring the politically connected."====

I noticed that the first time I heard her use that. After I picked myself up off the floor (staggering blows to the temple have that effect on me), I was still in shock on how someone could be on tv or anywhere and say such things with a straight face. I still don't know what to say now...it is too mind boggling and I keep looking for the hidden cameras...

Thank you though, for doing it for me.
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HUFFPOST SUPER USER
mr Lyons
views of an meat-eating socialist
09:34 AM on 06/18/2012
she's not on tv, she's on FOX news. Thats like being on the Simpsons, but not as smart or accurate.
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ArborialBiped
There is no spoon. But there's a spork.
11:14 AM on 06/18/2012
Exactly. Simpsons viewers, unlike Faux news viewers, require the storyline to actually make some sense.
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HUFFPOST PUNDIT
den1953
The National Inquire of Politics the GOP!
05:10 PM on 06/17/2012
Can't get any more crony then this phony!
ThinkCreeps
Seriously, it's time.
04:43 PM on 06/17/2012
Silly.... it doesn't apply to Herself! All this stuff is only for other poeple.
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HUFFPOST SUPER USER
WowFolksAreDumb
03:32 PM on 06/17/2012
My folks were stationed at Elmendorf AFB in Alaska while Palin was governor. My mother likes to brag that she hated Sarah Palin before it was popular, and has a laundry-list a mile long of the misdeeds Palin had while in office, including refusing to live in the Governor's mansion and instead staying at her home in Wasilla, raking in a housing allowance and a travel per-diem. Of course, that was after she filled her administration with high school friends and right-wing flunkies. I'm not sure when she did so, but she also demanded her ex brother-in-law be fired, and when his boss didn't comply, she fired him instead and replaced him with someone who would carry out her revenge.
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IgnoranceIsStrength
Don't ask me, Google it yourself !
01:14 PM on 06/17/2012
A reading from the Gospel according to St. Tparty:

1. And St. Tparty said: 1. All that is, may be bought and sold. 2. All that is private is better than any that is public, for it is private, and not public. 3. So long as one of us, somewhere, is covered by a collective bargaining agreement, none of us anywhere can truly be free. 4. There is no such thing as 'society', there are only And, you know, there is no such thing as society. There are individual men and women, and there are families.5. And regarding these lessons , always remember , there is no alternative. 6. And the people rejoiced, and went hungry, and naked, and ill in their rejoicing.

Here ends the lesson.
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OkhamsRazzor
The meaning of life is to give life meaning
05:42 PM on 06/17/2012
If they had their way, St. Tparty would be painted into the 'last supper' portrait.

I wish I was kidding.
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HUFFPOST SUPER USER
Wonderfull
Consulting commenter.
08:41 AM on 06/18/2012
I'm sure it is happening as we speak. Probably commissioned by Glenn Beck.