MasterResource on Crony Capitalism: Principles (Part I)

[Valin]

Crony Chronicles:

9/5/12

 

 

 

Walter Donway at the MasterResource blog introduces a three part series on cronyism, and begins with an article on the principles underlying cronyism. The entire piece is well worth reading, here are a few short excerpts:

 

The reign of cronyism throws into relief two radically different breeds of businessman: the one who profits by innovating, producing, cost-cutting, and serving customers—and the one who prospers by means of “pull” in Washington, the state capital, or the town hall.

 

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Those who insist that the rich and powerful always will exert their influence to extract favors and advantage from politicians and bureaucrats may welcome this advice: Devise a government strictly limited by its constitution (as the Founding Fathers did) so that politicians and bureaucrats simply don’t have the power to help or hinder business.