John Stossel ??? Crony Capitalism

As the government grants itself new powers and responsibilities, presumably under good intentions, it creates a huge incentive for well-connected players to game the system. That’s crony capitalism, also called corporatism.
Unsurprisingly, with such attractive returns on lobbying investment (200$ return for 1$ “invested”), getting government favors to gain competitive advantage or maintain an unhealthy business is an increasingly popular strategy, as opposed to regular competition (on quality, price or innovation).
The trick is to sell the regulation as some form of consumer protection, while downplaying other effects on the broader picture and long-term.

Bastiat had already brilliantly analyzed this problem in his essay, That Which is Seen, and That Which is Not Seen.

Disclaimer: I’m a fan of John Stossel, but honestly not Fox 😉 I wish he would have stayed with ABC 20/20. Oh, well…


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