Reason asks: What is the libertarian solution to crony capitalism? I’d say, libertarianism.

The bigger the state the more corruption one will have. The more power we put in the hands of the government the more it will be abused.

It is not a matter of “getting good people into government,” or “getting money out of politics.” People who enter government won’t one day just become virtuous with the right laws, written of course by the rascals who will be regulated by them.

Government is force. It is power. As such it attracts people who for whatever reason desire power. This is one of the fundamental flaws of government.

In private (and voluntary) society one must make a case to the “market” for whatever one wants to do. In government no such case needs to be made. Regulations can be enforced or not enforced at the whim of a bureaucrat who cares not what the “market” has to say.

The only way to reduce crony capitalism is to reduce the size of the state, to limit its scope. New regulations will never solve the problem and often just make crony capitalism worse.