CRONY CAPITALISM: HOW BAD IS IT?

In a recent blog post, I asked the question whether we needed or wanted a businessman representing us in the legislature. During my examination, I talked about the difference between a capitalistic system (or free market) and a government system. I concluded that it isn’t important that a legislator was a businessman, or even relevant for that matter. What IS important is that any legislator understand the limits placed upon him by the US and State Constitutions AND that he/she understand the basic principles of our Republic.

As I worked through all the logic, I mentioned a term----crony capitalism--- and promised to expound on it. Well, let’s briefly look at what it is....

Crony capitalism is when someone uses the power and freedom of our Representative Republic and distorts it for personal gain. Pure capitalism is, by and large, a self-regulating system. I do admit that it is possible that without sufficient resistance or friction in the system, it is possible to oscillate out of control. I know this principle from my engineering background. Any system without sufficient friction can become unstable. Anyway, for the sake of discussion, let’s just say capitalism is a self-regulating system.

Crony capitalism is something entirely different. Crony capitalism uses the power of our government to upset the natural balance between competing entities. For example, let’s say company A is a large company and is finding it difficult to compete against a new, smaller, leaner, agile company B. Company A then lobbies his legislators to change the law in order to disadvantage Company B and/or advantage itself in some way. Company B is small and cannot afford to “ante up” so it is damaged, whereas Company A survives, not by becoming leaner and better, but by spending money to “encourage” legislation in its favor. Recall what happens when the free market is allowed to work properly……. consumers benefit with cheaper prices and better products. Not so with crony capitalism. The people (that is, you and I) lose!

In the above scenario, legislators use the authority WE have given them to SELL legislation. Now, it isn’t that direct, and you’ll find it difficult to trace any quid pro quo event. However, simply investigate list of contributors to my opponent’s campaign and try to tell me that these organizations contribute in order to further individual FREEDOM and LIBERTY. NOT!

Our government is for sale and open for business. That’s crony capitalism.

I have posted a gallery of images that show my opponent's contributors on my web page. Look through them and decide if you want to continue paying taxes to somebody that is in business using the authority we’ve given him. Then make your choice. I’m offering something different!

Vote for Mark Johnson on May 15th!

In Freedom and Liberty