March 7, 2015 by Ted 25 Comments How Cronyism is Hurting the Economy Find LearnLiberty on Facebook: http://on.fb.me/X9qijG Beyond Bailouts: What Is Cronyism?: http://mercatus.org/publication/beyond-bailouts-what-cronyism It is... Video Rating: 4 / 5
Crasty Bowersox says
It would depend on what those regulations actually are, how they are
written. They could be written to exclude businesses with under 50
employees or so. We obviously need some regulations. Rules need to be in
place to protect people or it’s all for nothing anyway.
Roy Long says
A lot of poor countries have small gov’t, but they still have cronyism and
Choose limited federal government. Stop making millionaires out of our
politicians and lobbyists. Stop increasing the power of connected
bruno zoekteenjob says
It’s not real capitalism it’s crony capitalism.
It’s the same nonsense like communist fans say: it didn’t work in the USSR,
because not the whole world was communism.
Would removing government regulation short-term enable already powerful
corporations? What would their return to balance look like?
The solution to end cronyism is the same as it is for removing money from
To remove money from politics or end cronyism you have to get rid of what
attracts money to politics.
Which is the Tax Code and excessive regulation.
The only way to defeat crony capitalism is to with crony capitalism to the
small & medium business & with higher payouts to poor people who actually
corporate welfare HAS TO BE DESTROYED. The only way is with cash infusions
to small, medium business, the unemployed & a 50% cut back of corporate
Also get an Occupy debit card & smack the banks in the face.
this video would be more complete if you included the union political
machine as part of the cronyism story…
Jonathan Chen says
That didn’t make much sense to me, Crony Capitalism is more a sociological
term except a economic mean I think, government regulation in a country
basically structured by consortium (Japan in the old times) is worth
nothing but some types of fuels like video said. I wouldn’t say government
is working for them but in some extent government is actually reducing the
competition by talking about pensions investing and subsidizing domestic
suppliers, this is just ridiculous as ripping the poor to the rich.
Ok we’re talking about power here so lets expand and say absolute
power….Wouldn’t it depend on the individual which holds the power ? He
can chose not to do any favors for anyone and let the market sort itself.
Kinda like taking again the pill that made you ill and finding a cure .
It’s clearly not true that regulation hurts small business more than small
Without regulation (eg anti-trust), the large will crush the small. When
Reagan removed Carter’s antitrust regulations, the net result was clearly
consolidation. Think about that each time you pay your internet/cable
My God! I knew regulations were a massive problem, attacking both personal
property rights and profitability, but I had no idea it was 40% cheaper for
corporations! I say occupy Capitol Hill!
137 crony capitalists saw this video.
Cronyism is certainly hurting the economy, but the argument presented in
the video does not cut it. Rather than weakening government, we need a
government that is less prone to being bought by Big Money, a government
more capable of making decisions for the protection and good of the whole
nation. A first step toward that would be campaign finance reform.
Although there is room for deregulation on SMALL BUSINESS, the reverse is
true at corporate levels. Look what happened after 30 years of deregulation
of Wall Street. For years leading up to 2008 they did not even perform
minimal due diligence — meaning they did NOT make sure the millions of
mortgages they bought up and packaged were originally sold to individuals
who showed ability to make payments!!! That alone would have prevented the
bubble and crash.
Eliminating Glass-Steagall in 1999 was a huge mistake! That regulation
needs to be re-instated. Dodd-Frank (its post-crash incarnation) is
Jacob B says
Government is not the solution. Humans by their very nature are greedy. Let
the FREE market do it’s job. Government must go.
NOTHING fuels corporatism like govt pension investments in big business.
There are some estimates over 200k governments all over the country (state,
city, county, municipal) all investing in big banks, big oil companies,
Microsoft, Apple, Wal-Mart, etc.
Assumably this is trillions and trillions invested in big corporate America
which is enough to make any liberal cringe, but where people don’t connect
the dots is that as the govt gets bigger and bigger, pension investments in
big business get bigger and bigger.
Look at the Annual Financial Reports for these retirement systems online to
find out more.
New York State Retirement System has all their holdings online (not just
Govt is the ENGINE of corporatism my friends
Mike Noyes says
*video length **3:36*
h/t +Jason Brennan
Deregulation would never help some sectors, like communications. There are
a limited amount of airwaves to license and a limited amount of places to
wire. This means startups have no chance of success and companies can
charge their customers higher fees due to lack of competition. Bell and
Rogers in Canada buy airwaves to NOT use.
Hunter Schultheis says
Pardon the misspellings, I am on my phone.
Joaquín Bustillos Arce says
typical ibertarian, pro small government bullshit… during Glass-Steagall
there were no recessions…
The top richest % of people already own practically everything. What do you
think those rich people would do if the game wasn’t rigged in their favour?
Modern global capitalism requires ‘cronyism’ to function; the ‘markets can
regulate themselves invisible hand nonsense’ is exactly that, nonsense.
Phil Brown says
Hunter Schultheis says
People commonly forget the fact that our govt was contracted by the states
to promote, preserve, and protect the union. In those three words how can
someone feasible discern that the govt aught to tell you that you need
healthcar,e and also a particular type of healthcare.
Peter William Lount says
Rum Dreg says
What about environmental regulations?