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- In the former, entrepreneurs make profits by risking their own assets to produce goods and services that they sell to willing customers. In the latter, predators use political influence to obtain special favors or bailouts from government at the expense of their competitors and the taxpayers.
www.atlassociety.org/post/true-capitalism-vs-crony-capitalism
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 ...
- “Crony Capitalism” Is Not Capitalism, But Political Cronyism
- “Crony Capitalism” Is A Contradiction in Terms
- The Free-Market Is The Solution to Cronyism in The Private Sphere
Cronyism, in a political context, is the government granting political favors and privileges to one party at the expense of the rightsof others. Examples include: 1. a politician subsidizing a private business with taxpayer funds; 2. the government granting a monopoly (exclusive license) to some company; 3. a government official creating a law to b...
Capitalism is a political-economic system based on the principle of individual rights, which means the separation of state and economics (just like the separation of church and state). Under capitalism, the government’s sole purpose is to protect each individual’s rights equally. It is a system of justice. Cronyism is the practice of giving rewards...
Examples of cronyism in the privatesphere are the awarding of a job to a less qualified candidate because of their sex (sexism), family relation (nepotism), or race (racism). Under capitalism, a private business is free to hire and award employees as they wish so long as they do not violate the rights of others. However, under a free-market, a busi...
Although the roots of American crony capitalism date back to the government-mandated cartels of the New Deal, and crony capitalism grew gradually over several decades, it appears to have accelerated beginning with the financial crisis and the postcrisis era.
- Todd Zywicki
- 2015
May 26, 2011 · True Capitalism vs. Crony Capitalism. Citizens, candidates, and commentators must make a crucial distinction between true capitalism and crony capitalism. In the former, entrepreneurs make profits by risking their own assets to produce goods and services that they sell to willing customers.
State capitalism is an economic system in which the state undertakes business and commercial (i.e., for-profit) economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, centralized management and wage labor).
May 29, 2014 · come to be known as “crony capitalism.” The engine of crony capitalism is the process known as rent-seeking, a term coined by the great economist Gordon Tullock to describe the process by which these well-organized interest groups pursue government favors.2 Tullock’s profound insight was that the
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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.
