It’s time to reject crony capitalism and embrace the real thing

cronyism

Not a bad idea.

(From The Telegraph)

The second way that businesses and investors can make money is by getting the government to rig markets in their favour – by erecting barriers to entry to restrict competition, by providing them with cheap credit or by allowing them to use their political connections to grab contracts and other privileges. These gains are not the fruit of value-adding economic activity. Rather than helping to grow the economy, they often merely redistribute wealth.

There have been far too many examples of this kind of behaviour in recent years in the West, in Russia, in Latin America and in most other parts of the world. Tragically, our economic systems have been moving away from commercial relationships and becoming ever more politicised.

In no developed country have the effects of this shift been as apparent as in the US. Remarkably, counties in and around Washington, DC have become among the most prosperous in the US. They are populated with lawyers, lobbyists, contractors and others who derive their income from doing deals with politicians.

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