The issue of crony capitalism is a big one these days. Bailouts for banks, subsidies for Big Business, diverting tax money to businessmen’s pockets – these things are condemned not only by Occupy Wall Street but also the Tea Party. But the practice of crony capitalism continues unabated at the federal, state, and local levels. In Maryland, the recent Clean Energy Summit provides a good example of this.

As the Maryland Reporter story on the summit notes, “much of the clean energy business is mandated by government standards, and is still dependent on government subsidies through tax credits and special financing.”

In other words, most of these businesses would not be in business were it not for government mandates and government subsidies. Or, to make it more clear, the businessmen who own these companies are making money because their friends in government are forcing consumers to pay higher prices for electricity and taxpayers to pay higher taxes. The money Maryland ratepayers and taxpayers, regardless of if they are rich or poor, pay because of these government programs ends up in these businessmen’s pockets.

This is crony capitalism at its purest form. These businessmen persuade legislators and the governor to enact programs that take money from one group and give it to them. They are not making money because they offer consumers a good product at a good value. Instead, they stay in business because they are good at lobbying.

Where are the “progressives” protesting this meeting of the 1%? Where is the outrage over low-income ratepayers being forced to subsidize rich business owners? Where are the protest signs denouncing taxpayer money going to private industry?

Maybe because it’s ostensibly “for the environment,” this type of corporate welfare is somehow OK in the minds of some. But if that’s the case, then those who excuse green energy subsidies don’t really care about the issue of crony capitalism, they merely care about which cronies get enriched.

The Washington Examiner’s Tim Carney points out the irony in a 2010 column, written during Ohio governor Ted Strickland’s re-election campaign:

But from another perspective, the event could be seen as brazen patronage -- Strickland was subsidizing businesses with the tax dollars and the electricity bills of his constituents, and the subsidized CEOs were supporting Strickland's re-election. It was another glimpse of the odd new world of "green jobs" in which Democrats outflank Republicans on the "pro-business" line and openly give handouts to campaign contributors. Everything is hunky-dory because it's green.

Replace “Strickland” with “O’Malley” and the sentiment applies pretty well to Maryland. And, to be fair, these green energy subsidies aren’t only supported by Democrats. Plenty of Republicans like this type of corporate welfare, too. They usually prefer tax credits to direct grants, but there is no substantive difference between the two approaches.

There may be hope, however. The Maryland Reporter story notes that there was some concern at the Maryland summit about the industry’s reliance on government:

But one of the panels explored “strategies for financing consumer adoption.” Ideas included Clean Energy Victory Bonds, modeled on the small denomination World War II bonds sold to support the war effort. Another was the creation of green banks to finance clean infrastructure.

But then it was time for awards and we see where the group’s true priorities -- sucking up to politicians:

Del. Sally Jameson, D-Charles, received an award for her successful sponsorship of two bills this year. One raised the amount of solar energy that must be purchased by utilities for their renewable energy portfolio. The other, which had 21 co-sponsors, more than half of them Republican, authorizes renewable energy tax credits for installation of residential geothermal cooling and heating systems. Jameson said it was “the first bill of its type in the nation.”

I’m all in favor of green energy – as long as these companies don’t use my tax money to make profits or aren’t kept afloat because of government mandates.