Cronyism and Corporatism

Democrats learned the hard way that voters don’t like being told the economy is great when they’re struggling to afford everyday life. Now Republicans have chosen the same strategy.

When government becomes involved in finance, interest groups abound, each one seeking wealth transfers to the detriment of others. This has been the case since the founding of this country, and AI is just a new chapter.

By convincing Congress to permit the government to take equity positions in private firms, Donald Trump has completed the transition of the economy from free markets to political capitalism.

In this week’s Friday Philosophy, Dr. David Gordon reviews Cronyism: Rise of the Corporate State 1849–1929 by Patrick Newman.

The sure way to destroy a prosperous nation is to debase the currency. History is full of examples—from ancient Rome to the nascent French Republic to Weimar Germany. The US and the West, fiat currency regimes all, are irrevocably destined to join this sorry club.

The evolution of the US government into a powerful cartelizer of the economy required special interests persistently lobbying to reduce competitive market pressures. It required cronyism: government intervention that benefits special interests at the expense of public interest.

The prominent international commentator Saifedean Ammous

Murray Rothbard saw government as a predatory, criminal entity and the Microsoft lawsuit of 1998 proved to be a classic example of government organized crime in action.

Murray Rothbard saw government as a predatory, criminal entity and the Microsoft lawsuit of 1998 proved to be a classic example of government organized crime in action.

Elon Musk becoming the world’s first trillionaire has triggered a familiar round of progressive outrage. But the imprecise focus on wealth distribution obscures the real issue: how much of modern wealth is acquired through politics rather than production.