Skip to main content

Capitalism Is Never Cronyism

I hear the phrase “crony capitalism” all the time. To me this is a classic oxymoron, and a phrase likely created by manipulative political operatives seeking to obfuscate matters.  Linking the two words – “capitalism” and “cronyism” – is in fact idiotic.  Capitalism is an economic system based on private ownership of the means of production and the creation of goods and services for profit as contrasted with governmental control.  Cronyism is the practice of favoring one’s close friends.  A capitalist system allocates resources according the maximization of profit, while a cronyism system does so based upon favoring certain people, without regard to maximizing profits.  These two concepts are irreconcilably incompatible.



In fact, by definition the less capitalist a system, or the more governmental control of the means of production and the creation of goods and services, the more susceptible a society is to cronyism. Profit maximization is blind to skin color, religion, nationality, socio-economic standing, education background, or any other standing.  In fact, it is the only pure system of democratically allocating resources and opportunity across a society.  Cronyism, which is the favoring of certain people by other people, is a system that is very vulnerable to all of those discriminatory practices, and perhaps worse still, is by definition inferior to a merit-based system in determining the allocation of resources and thus doomed to result in lower levels of productivity and opportunity.  Big government, and expanded governmental powers will always result in a greater degree of cronyism.

Popular posts from this blog

"No, Not You. You Are Fake News."

"No, not you. You are fake news."  These were the words chosen by our president-elect to shut down a CNN reporter seeking to question him at his recent press conference. Many hearing those words surely recoiled, interpreting them as an affront to freedom and a form of censuring. I reacted quite differently, instead celebrating the moment that a strong leader decided to hold people accountable in a public manner for their actions.

Taxes and Hyperbole

There is a new tax code in the U.S., and this is indeed a “Yuuuge” deal. As far as I can tell, it is as close to an unmitigated home run for America as can be. Is it perfect? Of course, it’s not. The code retains its unwieldy size and complexity, largely as a result of compromises made in order to bribe congressmen and senators for their votes. Until we get term limits, it seems we’re stuck with a tax code that is big and complex. However, it does hit the mark on a few key issues: most every taxpayer will now pay less to the federal government (except those in states with ridiculously mismanaged economies who now will be forced to hold their state politicians more accountable); and our businesses, large and small alike, will remit less of their profits to the federal government and will be liberated to invest that savings into growth – which will surely create job and wage growth in the productive private sector.

James Harden - A Classic Case of Misunderstood Value

The last time I wrote on hoops was December 2013 when I presciently trashed Carmelo Anthony. The time has come to take out my poison pen once again to decry James Harden as a fraud. I know that Harden has amazing stats - third in scoring, first in assists, and that his team the Rockets have far exceeded expectations as they are currently the 3rd seed out west. But, I still maintain that he is an awful player.