Cronyism

Politically speaking, cronyism is government favoring of selected individuals or groups, resulting in financial and/or political gain by the favored. It involves political payback, results in increased costs to taxpayers, and is immoral.  

With the separation of State and economics and a full recognition of individual rights, cronyism would essentially be eliminated: politicians would be completely disincentivized from such favoritism. Therefore, it has absolutely nothing to do with capitalism despite the disparaging misnomer “crony-capitalism.” Call it “crony-socialism.” 

All the attention is on the corporate/private sector side. Government administration/Congress favors certain corporations with loans, subsidies or bailouts; the corporations are then pressured to sacrifice their capitalist principles in “cooperation.” Other corporations are punished with over-regulation and controls; that invites them to lobby to defend their interests. Depending on political views, contributions, bribes and compromises, some are advantaged by their lobbying efforts. Some will certainly attempt to use the political process to gain competitive advantage.  

The result, of course, is corruption, increased costs to all parties, and great harm to our economy and taxpayers - all due to government’s statist policies. In a small way, the “Occupy Wall Street” protestors see the true harm done. But due to their statist bias, they are primarily attacking the wrong side of the problem: government’s role is being ignored. 

Also ignored are the following forms of cronyism that further endanger our rights. 

In all efforts to redistribute wealth, government favors selected groups of people over others; and in the end, such efforts hurt the favored more than those intended to be harmed. A perfect example is ObamaCare: in an attempt to favor the uninsured poor and middle class, it is an entitlement that will raise health care costs and taxes for all, and lower the quality of care; and many employers will drop their insurance plans, leaving employees without their lowest cost insurance option. It also subjectively favors businesses with mandate waivers. 

In the constant plea for “fairness,” some are meant to be sacrificed for favored others. How can it possibly be “fair” to favor non-productive over productive individuals? That is a ruse to disguise the real and immoral goal of economic equality. 

Public unions are advantaged at the expense of the private sector. If “fairness” is to be an issue, why no outcry about union executive salaries that are greater than most corporate employees? 

Government constantly favors special interests via legislation, regulation and tax code. E.g. environmentalists and green energy vs. oil/gas/coal industries. 

And we certainly cannot overlook individual payback in the form of appointments, grants et al resulting from election support. 

We must eliminate all of the above forms of cronyism; in fact, it would also be cronyism if only selected portions of it were eliminated. If we could let the free market - not irrational politicians - determine winners and losers, and supply and demand for products and services, then we could realize rapid economic growth.