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Crony capitalism, sometimes also called simply cronyism, is a pejorative term used in political discourse to describe a situation in which businesses profit from a close relationship with state power, either through an anti-competitive regulatory environment, direct government largesse, and/or corruption. Examples given for crony capitalism ...
This Article discusses “crony capitalism,” a form of rent-seeking, and its sources. Although the term crony capitalism is generally applied to non-Western economies, any economy is susceptible to three primary sources of cronyism: standard special interest legislation, “bootlegger and Baptist” coalitions, and pathological altruism. Identifying cronyism requires care, as what appears to ...
In the United States, the term “crony capitalism” refers to a political-economic system that resembles traditional political “corporatism.” As used here, it describes a system in which government, big business, and powerful interest groups (especially labor unions) work together to further their joint interests. Government protects and subsidizes powerful corporations and in (implicit ...
- Todd Zywicki
- 2015
Crony capitalism is not solely an economic phenomenon. It is a political creation and has political consequences. Crony systems re-quire that special economic entitlements be granted to some subset of asset holders. These entitlements then allow those asset holders to extract rents from other members of society.
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The meaning of CRONY CAPITALISM is an economic system in which individuals and businesses with political connections and influence are favored (as through tax breaks, grants, and other forms of government assistance) in ways seen as suppressing open competition in a free market.
it applies to businesses and firms in a nation or society. A politicized or rigged economic system is dubbed crony capitalist to distingui. h it from a system of free markets and limited government. It is the deliberate, systematic use of public policy to rig. arkets in ways that benefit politi-cally connected actors. Crony capitalism breed.
Apr 10, 2014 · The argument leads to a pioneering attempt to elaborate an original theory of crony capitalism as a sui generis system and with that end in view it combines three complementary perspectives: microeconomics (dealing with the basic economics of rent-seeking), institutional or structural (dealing with the specific structures and configurations of institutions, policies and processes via which ...
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