segunda-feira, junho 24, 2013

The Moral Crisis of Crony Capitalism

The Moral Crisis of Crony Capitalism:
We've got to change the incentive structure that exists in Washington, and that incentive structure is driven by cronyism, where the state and private sector intersect. If I were to define crony-capitalism, I really use the term cronyism because I don't think that it speaks of capitalism per se, but cronyism is essentially where economic decisions in terms of who accumulates wealth and who doesn't, is not based on merit, it's not based on economic prowess or success or meeting needs in the marketplace. It's based on political connections and relationships whereby you are able to either manipulate the state to your advantage, and to the disadvantage of your competitors.

It's an enormous threat to our country because there are very few advocates for outright socialism anymore. But what you are seeing is that many people on the left are basically looking to use the market system for progressive ends and so they come up with very seductive ideas like public/private partnerships. They talk about the need we have that will be beneficial to our economy and to our country for there to be a growth in, say, green energy. And it's a very noble sounding ideal. The problem is that when it actually comes to implementation, given human nature and given the nature of politics, the loans and grants go to friends and allies rather than to people who are most deserving based on technological breakthroughs and consumer demand.

So I think it is undermining what creates prosperity in this country, which is free market capitalism.

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