Posts tagged with: Cronyism

bernie-sanders-photo1In last Tuesday’s Democratic debate, Senator Bernie Sanders stayed true to his famed aversion to capitalism, proclaiming the fanciful virtues of “democratic socialism.” Yet when prodded by Anderson Cooper — who asked, “you don’t consider yourself a capitalist?” — Sanders responded not by attacking free markets, but by targeting a more popular target of discontent: Wall Street and the banks.

“Do I consider myself part of the casino capitalist process by which so few have so much and so many have so little, by which Wall Street’s greed and recklessness wrecked this economy?” Sanders asked. “No, I don’t.”

One could be forgiven for not understanding what Sanders means by “casino capitalism.” Is it crony capitalism, in which legislative favors are secured by the rich and powerful (which conservatives also disdain)? Is it bailouts for the big banks (which, again, conservatives also disdain)? Is it basic trade and exchange on a large, complex scale, and if so, at what size does it become problematic? Does he despise the stock exchange itself? Too loud with all its blinky lights and bells? (more…)

dollarbillcryingActon’s director of research, Samuel Gregg, is looking ahead to a post-Obama economy. He notes that every presidency has problems it leaves behind upon exiting the White House, but we have some major economic and moral obstacles to overcome.

Gregg outlines the challenges: mounting debt, entitlement programs that keep growing, crony capitalism, unemployment. What to do?

Doing nothing isn’t an option for American conservatives. I’d suggest, however, that the incremental approach generally followed by conservatives—which often amounts to trying to adjust, rather than override or completely dispense with, policies enacted by progressives—isn’t going to be enough either. Conservatives are instinctively wary of major upheavals. Yet if they really believe that progressive economic policies are seriously damaging the common good, they should perhaps do what progressives do: implement fundamental changes.


U.S. Rep. Justin Amash, in an article for, discussed the recent charter expiration of the Export-Import Bank (Ex-Im) and how that is a good first-step toward reducing the corporate welfare and crony capitalism that has infected American politics and economics:

If a man swipes your wallet, he’s a thief. We don’t ask whether the pickpocket ultimately spent the cash on a worthy cause. Yet, supporters of corporate welfare would have you believe that as long as the companies receiving welfare prosper, you shouldn’t care that the government snatched your money to make it happen.

The moral implications of cronyism are abundant. As public/private partnerships expand, the market system slowly transforms from free enterprise and competition driven by market forces to government control of who succeeds and fails based on loans or bailouts to favored groups and corporations. In an interview with the Acton Institute’s Religion & Liberty, Peter Schweizer discussed how cronyism is creating a moral crisis and how it is affecting the poor:

Our poverty programs get distorted by crony corporations. Just look at how the food stamp program has expanded over the years. Initially, it was a safety net to provide basic provisions, and most people agree basic safety nets are needed. The problem is that when the government started throwing around billions of dollars, the snack food and soft drink industry saw dollar signs. So they lobbied and got the regulations changed so that snack food and sodas are now covered by government assistance. It’s now a $10 billion industry for soft drink companies. Then it got expanded to include convenience stores, and now you’ve got the fast food industry lobbying lawmakers to let people use EBT cards at fast food establishments.


Great and powerful Oz

Great and powerful Oz

According to Merriam-Webster, “cronyism” is ” the unfair practice by a powerful person (such as a politician) of giving jobs and other favors to friends.” For instance, former Detroit mayor, Kwame Kilpatrick, surrounded himself with friends and family members while in office, as he cheerfully plundered the city’s coffers, sharing the wealth with his entourage.

It’s easy to think that cronyism is like Oz: far, far away. Yes, there are tricky creatures there, but heavens, we here in Kansas won’t be affected by shiny streets and glowing horses.

Not true. The economy shapes the culture. What happens in Oz, if you will, is felt in Kansas. And not only felt in Kansas, but eventually begins to seep into the Kansas culture. Why shouldn’t I have an army of flying monkeys to protect my farm? Why shouldn’t I sidle up to the Wicked Witch and make sure she’s on my side? You never know. Michael A. Needham and Ryan T. Anderson state,

While cronyism is most recognizable when it generates economic windfalls for the favored few, conservatives would do well to explain that it also operates in other realms. Indeed, for decades, the Left has been seeking special advantages from government in its effort to reshape the character of American society. So, if you’re against the government arbitrarily picking winners and losers in the economy, you need to be against it doing the same in the culture. If Solyndra and the Export-Import Bank are a problem, so too is government funding for Planned Parenthood and government discrimination against Catholic Charities.

We call this sort of government special-interest-seeking “cultural cronyism.”


military-spendingWhen it comes to spending on national defense the political debate is often presented as a simplistic, binary contest between those who want to spend more and more (often conservatives, who want a strong military) and those who want to spend less and less (often liberals, who want to use the money for social welfare purposes). While those discussions are important, they are also incomplete. Conservatives, in particular, should be more cognizant of the way cronyism can undercut military readiness.

In an article today at The Stream, I argue that we need a broad-based agreement about the most effective ways to spend defense funds based on the true needs of the military:

Blog author: ehilton
Monday, February 23, 2015

ukraine streetBohdan Solchanyk was not a materialistic young man. He did not seek worldly pleasures, but rather took delight in his studies, his fiancee, his faith. What Bohdan wanted -what they both wanted – was live in the Ukraine with dignity and freedom.

Bohdan’s dream died last week at a peaceful protest against the government, where he and 80 others were “brutally shot and killed by government snipers in the central square of the capital of Ukraine, as the world’s TV cameras showed the slaughter live.”

Borys Gudziak, writing at RealClear Religion, says Bohdan’s life meant something, despite the fact that he lived only 28 years. (more…)

Blog author: ehilton
Monday, February 23, 2015

Artful-Mayhem-Feb-2012-6We know that, for economies to thrive, people must be free to start their own businesses without taxing regulations, that free trade must be the de facto means of doing business, and that cronyism and corruption must be eradicated.

But that’s not enough.

At the Institute for Faith, Work & Economics, blogger (and former Acton intern) Elise Amyx says we have to have human flourishing as well.

Economic freedom is only one component of human flourishing. We should think about it as a prerequisite, a necessary foundation to society that makes human flourishing possible.

We need to ask ourselves, once we have economic freedom, what do we do with it?

Economic freedom may be the number one force wiping out extreme poverty across the globe, but it can’t do the job alone.

In a free society, we also need a culture of creativity, a culture of voluntary generosity, and a culture virtue and in order for humanity to flourish. (more…)