Posted on 02/22/2016 5:48:05 PM PST by Kaslin
We hear the term “crony capitalism” get tossed around a lot but … what does it actually mean? We should find out soon, considering that the current Republican front-runner has been held up as an example of a practitioner of the art. It’s a little more complex than just twisting arms on zoning codes, though, and Prager University engaged Jay Cost to explain the corrosive corruption the term signifies:
Capitalism is moral because it is premised on a voluntary exchange between independent parties - who agree to the deal only because it creates value for everybody. Crony capitalism is immoral because one of the parties—the government—has been bought off.
This creates three problems. First, it is unfair. Politicians are spending the public's money, but not for the public interest. Instead, they reward friends, supporters, or themselves. Our Constitution grants Congress the power to provide for the general welfare. Crony capitalism violates this sacred principle.
Second, it is incredibly wasteful. In our cereal example, the government overpaid by going with Ted instead of Steve. That's obviously a waste of taxpayer money. In fact, it is really stealing from the taxpayer. Here’s more waste. Ted had to spend money to lobby the government to get the contract. So, he didn't get all of that dollar out of the transaction. That's money that could have been spent making a better product or used in some other constructive way. Economists call this deadweight loss. And it can be substantial.
Moreover, crony capitalism distorts the broader economy. In some industries—like healthcare, student loans, home mortgages, and aerospace-the government is one of the biggest purchasers of goods or services. So its politicized decisions can have wide-ranging and detrimental effects. An entire industry can become, in effect, a client of the government. When that happens its goal is not to build a better mousetrap, but to keep politicians happy. How much does crony capitalism cost society per year? It is hard to say precisely, but the number reaches into the tens of billions of dollars, maybe beyond.
Third, it tempts politicians to break the law. Once politicians feel free to spend the public's money for their own political purposes, they are just a hop-skip-and-a-jump away from doing so to line their own pockets or pump up their campaign funds or both.
The biggest manifestation of crony capitalism, or perhaps more plainly cronyism, in this campaign is not Donald Trump — it’s Hillary Clinton. While in the Senate and especially at the State Department, corporations poured hundreds of millions of dollars into both the Clinton Foundation and the Clintons’ pockets. She and Bill took in $57.5 million in speaking fees largely from private-sector businesses during her four years as Secretary of State, including from entities having business with the State Department and the US government. The Uranium One deal was just one such example that resulted in much of America’s uranium stores ending up under the control of a Russian consortium.
Comparatively speaking, Trump’s gladhanding and favor-currying looks relatively clean. He never asked for a public trust, he argues, but had to work deals in the environment created by others. And he has a point.
The left are crony capitalists. They pull it off by depicting their behavior as “naked unregulated capitalism”.
So...does it count as crony capitalism if you support getting the government to amnesty illegal aliens so that business owners can hire them on the cheap instead of hiring American workers?
What a question Morrisey is an idiot!
The big-government/big-union/big-corporate crony-capitalist complex doesn't care if the pie gets smaller, they just want the whole pie.
Trump is more of a corny capitalist than a crony capitalist.
The GOP-E!
It’s a term that has been abused into oblivion and can mean anything. Every time your brother-in-law gets you a “deal” on something you are a crony capitalist.
It’s similar to what Republicans have done to the term “conservative”.
Crony capitalism is really anti-capitalism and “conservatives” are dumb to fall for using the term.
In a sense, Crony Capitalism is a form of National Socialism. acronym....NAZI
Crony capitalism is nepotism/favoritism. Thats in a nutshell what it is.
From the Preamble:Note that the writer here states:"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
" Our Constitution grants Congress the power to provide for the general welfare. Crony capitalism violates this sacred principle."Let's hear what Thomas Jefferson said on the subject of "providing" for the general welfare:
NOTE: In this letter to Albert Gallatin dated June 16, 1817, Thomas Jefferson discussed the General Welfare Clause after President Monroe had vetoed a bill for the improvement of the Cumberland Road. Monroe did not believe the work fell within the scope of the Clause.Â
You will have learned that an act for internal improvement, after passing both Houses, was negatived by the President. The act was founded, avowedly, on the principle that the phrase in the constitution which authorizes Congress “to lay taxes, to pay the debts and provide for the general welfare,” was an extension of the powers specifically enumerated to whatever would promote the general welfare; and this, you know, was the federal doctrine.
Whereas, our tenet ever was, and, indeed, it is almost the only landmark which now divides the federalists from the republicans, that Congress had not unlimited powers to provide for the general welfare, but were restrained to those specifically enumerated; and that, as it was never meant they should provide for that welfare but by the exercise of the enumerated powers, so it could not have been meant they should raise money for purposes which the enumeration did not place under their action; consequently, that the specification of powers is a limitation of the purposes for which they may raise money.
I think the passage and rejection of this bill a fortunate incident. Every State will certainly concede the power; and this will be a national confirmation of the grounds of appeal to them, and will settle forever the meaning of this phrase, which, by a mere grammatical quibble, has countenanced the General Government in a claim of universal power.
For in the phrase, “to lay taxes, to pay the debts and provide for the general welfare,” it is a mere question of syntax, whether the two last infinitives are governed by the first or are distinct and co-ordinate powers; a question unequivocally decided by the exact definition of powers immediately following. It is fortunate for another reason, as the States, in conceding the power, will modify it, either by requiring the federal ratio of expense in each State, or otherwise, so as to secure us against its partial exercise. Without this caution, intrigue, negotiation, and the barter of votes might become as habitual in Congress, as they are in those legislatures which have the appointment of officers, and which, with us, is called “logging,” the term of the farmers for their exchanges of aid in rolling together the logs of their newly-cleared grounds.
Crony capitalism is not capitalism.
What it comes down to is this: Crony capitalism is socialism.
Making a million a month giving speeches to Banks, a la Hillary.
What does crony-capitalism look like???
If politicians didn't have favors to dole out worth buying, then the practice would end.
As long as politicians do have favors to dole out, the large corporations and the politicians will find a way to get in bed with each other.
This, of course, is one of the fallacies behind Bernie Sanders' approach. He essentially says that he will fight against crony capitalism by increasing the size and power of the Federal government. But all that would do is make it even more worthwhile for companies to pay off politicians for relief.
Cruz’s plan to eliminate government subsidies should pretty much end lobbyists if he could get it passed.
Hillary “lost” SIX BILLION DOLLARS at State.
Ran weapons to Muslim terrorists and then got the Ambassador who did it for her raped and killed.
Lit the Middle East on fire and openly assassinated a head of State and laughed about it on television.
And opened up our entire classified security system to all of our enemies in the entire world.
Crony capitalism? No one has even remotely come close to what she’s done for money and power, and no one ever will.
Jeffrey Immelt, GE CEO, king of crony capitalism.
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