By Printus LeBlanc
Senator Elizabeth Warren likes to paint herself as a warrior for the little guy and for those that don’t have the money to hire lobbyists in Washington D.C. That may be the image she wishes to portray to the voters ahead of the 2020 election, but her actions scream Stalinist.
The Consumer Financial Protection Bureau (CFPB) was created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The agency has jurisdiction over banks, credit unions, securities firms, payday lenders, and other financial companies in the U.S. The agency is considered “off-budget” and therefore does not answer to Congress. The agency gets its funding directly from the Federal Reserve System. The only requirement of the CFPB is to appear and report twice annually before the House Financial Services and Senate Banking committee.
Current CFPB Director Mick Mulvaney appeared before the Senate Banking Committee earlier this year lambasting the fact that there is no oversight by Congress of the agency. Mulvaney stated, “while I have to be here by statute, I don’t think I have to answer your questions.” Mulvaney then went on to beg Congress to pass legislation to rein in the unaccountable agency. Mulvaney knows he will not be the director forever and does not want unelected bureaucrats having power that elected representatives can’t even check.
Make no mistake about it, the CFPB and the lack of accountability is the brainchild of Warren. It begs the question, why would a person elected to represent the people be in favor of an agency that has no oversight?
The citizens may have gotten their answer with another piece of legislation the Senator introduced earlier this month. On August 15, Warren introduced S. 3348, the Accountable Capitalism Act.
The bill is an abomination to the word capitalism.
The act will create the Office of United States Corporations within the Department of Commerce. It would be the job of this office to decide what is capitalism.
One of Warren’s principal complaints about capitalism is the return on investment. Senior officials in many companies are partially compensated with stock. For this reason, if the company does well, the stock does well, thereby ensuring officials would do what is best for the company. The Senator doesn’t like this and believes it perverts the system. The bill would incentivize officials to ignore stock prices.
What the Senator is forgetting are the profits she decries are also returned to millions of teachers, firefighters, and police officers in the form of dividends into their pensions and 401Ks. In fact, over half of America’s private sector workers are invested in the stock market through retirement plans. Is Warren trying to sabotage the private retirement market with this bill?
One of the more asinine sections of the legislation would require U.S. corporations to have the purpose of “creating a general public benefit.” Unfortunately, no one can define what general public benefit means. Because there is no definition, it would mean unelected bureaucrats would have the ability to direct whether or not a corporation could form. This would put government bureaucrats in charge of the open market. If some GS-15 doesn’t believe Product A from Company B provides a good enough public benefit, it doesn’t happen. Sounds a lot like command-and-control communism.
Senator Warren is revealing who she really is. Between the CFPB and her latest Stalinesque idea, the Senator from Massachusetts is a totalitarian that wants people to have no control over themselves. She wants government bureaucrats controlling the economy and what people do with their lives. It is a good thing Sen. Warren is trying to appeal to the communist base in the Democrat Party; this gives the people plenty of time to see what she is really about: unelected bureaucrats controlling their lives.
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Printus LeBlanc is the Legislative Director at Americans for Limited Government.
