Why do you say that America’s political system is degenerating into crony capitalism?
There is not a well-understood distinction between being pro-business
and being pro-market. Businessmen like free markets until they get into a
market; once they are in it they want to block entry to others.
Pro-marketeers want free markets at all times. The more conservative
pro-marketeers are fearful of criticizing business, because they assume
they will be seen as criticizing the free market. But we need to stand
up and criticize business when business is not helping the cause of free
In what way?
lobbying. Lobbying may once have been reactive but now it’s
proactive—businessmen use it to shape policy and ask for tax advantages.
This is corruptive of democracy.
Companies with a lot of money abroad sponsored a bill in 2004-2005 that
allowed them to repatriate their profits at a low tax rate. Thus $1
produced $220 of tax savings. The Bush-approved drug and Medicare act
was a huge bonanza for the drug industry. Their market value increased
by several billion dollars when this was announced. I could continue.
~Luigi Zingales, professor of entrepreneurship and finance at the University of Chicago’s Booth School of Business being interviewed in The Economist