What Christians Should Know About Crony Capitalism

[Chris]

Not a Christian but do like the Acton Institute Blog. I like the author's showing how old cornyism is.

http://What Christians Should Know A...ony Capitalism

The Term: Crony capitalism (sometimes referred to as cronyism or corporatism)

What it means: Crony capitalism is a general term for the range of activities in which particular individuals or businesses in a market economy receive government-granted privileges over their customers and/or competitors.

Why it Matters: For as long as there have been government officials, there have been economic cronies—friends, family, and associates who use their connections for their own financial gain.

In ancient Israel, for example, when the prophet Samuel appointed his own sons as leaders, they began to engage in cronyism: “[Samuel’s] sons did not follow his ways. They turned aside after dishonest gain and accepted bribes and perverted justice.” (1 Samuel 8:3).

Unsatisfied with these corrupt leaders, the elders of Israel asked Samuel to appoint a king over them. God told Samuel to warn the people of the consequences, which included even worse forms of economic cronyism: “[The king] will take the best of your fields and vineyards and olive groves and give them to his attendants. He will take a tenth of your grain and of your vintage and give it to his officials and attendants” (1 Samuel 8:14-15)....

He goes on to give examples of 9 different forms of cronyism: Monopoly privilege, Regulatory privilege, Subsides, Loan Guarantees, Tax Privileges, Bailouts (and expected bailouts), Tariffs and Quotas on Foreign Competition, Noncompetitive Bidding, and Occupational Licensing.

He references a paper of even more detail: THE ECONOMICS AND HISTORY OF CRONYISM (.pdf)

[texan]

Why should they know this again, assuming they don't already know?

I think we all know what crony capitalism is and no man is above it. There are many things in the bible that were done that were wrong. I think that is one reason God sent Jesus as the story goes.

[Chris]

Sorry, link is bad: http://blog.acton.org/archives/84939...apitalism.html

Not sure what you mean by your question. If you follow link you get example after example of cronyism. Why do we put up with it? That's my question.

[Common Sense]

To me, this is why a ultra free libertarian system would not work. You think there is collusion and corruption now? Take away the barriers put there by law and government and see what happens.

[Chris]

To me, this is why a ultra free libertarian system would not work. You think there is collusion and corruption now? Take away the barriers put there by law and government and see what happens.

The ultra free libertarian "system" would be anarchy, iow, no State, the government wouldn't exist, there'd be no centralized power. So who would businesses collude with?