How the World Was Made Safe for Crony Capitalism

cronys in lineThe reason this site exists is because the world, to a large extent, has indeed become safe for crony capitalism. This need not be permanent however. Though it likely can never be completely eliminated, crony capitalism can be rolled back. Markets and prices can be made freer. The government’s heavy hand can be made lighter. The natural genius of the free price system can flourish and the world will be richer for it.

Crony capitalism is getting more and more attention, and we are thankful for that.

(From Mises.org)

Periods of easy money are also immensely fertile fields for crony capitalism. After all, the first recipients of new money benefit at the expense of the last recipients and who those first recipients are is hardly random. By keeping interest rates below their natural levels, easy money cripples the stock market’s ability to carry out its price-discovery function, which is so vital to rational economic calculation and limits its usefulness to all but speculators. In addition, easy money policy enables increased government spending and as government spending grows, so does the opportunity to divert that spending toward the well-connected.

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