Politicians often support “industrial policy,” which means they get to grant special favors to well-connected companies or industries. But as explained by Professor Burton Folsom, this approach didn’t work very will in the 1800s. It’s not surprising, of course, that politicians like having the power to grant favors. It makes them feel important. But such […]
Search Results for 'cronyism'
Lessons from 19th Century Cronyism
Posted in Central planning, Government intervention, Industrial Policy, tagged Central planning, Government intervention, Industrial Policy on September 12, 2020| 6 Comments »
Industrial Policy Is a Recipe for Cronyism and Stagnation
Posted in Big Government, Central planning, China, Economics, Government intervention, tagged Big Government, Central planning, China, Economics, Government intervention on September 3, 2019| 17 Comments »
Ronald Reagan must be turning over in his grave. A Republican president is pushing protectionist policies that hurt American consumes and taxpayers. A Republican president and Congress are spending like drunken sailors (apologies to drunken sailors). Now some Republican politicians are promoting a version of central planning called “industrial policy.” This newfound flirtation with industrial […]
Green New Deal: Cronyism on Steroids
Posted in Central planning, Cronyism, Green New Deal, Ocasio-Cortez, tagged AOC, Central planning, Cronyism, Green New Deal, Ocasio-Cortez on July 17, 2019| 15 Comments »
From a macroeconomic perspective, President Obama’s so-called stimulus was a flop. The federal government borrowed and redistributed almost $1 trillion, yet the economy stagnated. From a microeconomic perspective, the faux stimulus may have been an even bigger failure. One of the worst features was the laughable and scandal-ridden green energy program, which featured corrupt boondoggles […]
The Continuing Battle against Cronyism at the Export-Import Bank
Posted in Big business, Big Government, Cronyism, tagged Big business, Big Government, Cronyism, Export-Import Bank on July 3, 2019| 1 Comment »
One of the worst examples of Washington cronyism is the Export-Import Bank, which has provided subsidies for big companies that sell to foreign buyers. Corrupt firms such as Boeing and General Electric argue that they need help from the Ex-Im Bank in order make those sales. Is that true? Interestingly, we had a real-world test […]
The Hidden Tax of Cronyism
Posted in Corruption, Cronyism, Government intervention, tagged Corruption, Cronyism, Government intervention, Ukraine on August 30, 2018| 30 Comments »
I don’t like it when poor people receive handouts from government, though not because I think they’re being grifters. I mostly view them as victims who are vulnerable to getting trapped in the quicksand of government dependency. The people I despise are the rich people who manipulate the levers of power to get undeserved goodies. […]
Modern-Day Protectionism Enables Cronyism and Corruption
Posted in Corruption, Cronyism, Protectionism, Trade, tagged Corruption, Cronyism, Protectionism, Trade on August 27, 2018| 18 Comments »
During America’s early history, trade taxes were the major source of government revenue, but they were “revenue tariffs” rather than “protectionist tariffs.” Lawmakers didn’t necessarily want to block imports. This was before America was plagued by an income tax and some source of revenue was needed to finance the government. And since the central government […]
Elizabeth Warren Wants to Make Cronyism Great Again
Posted in Corruption, Cronyism, Economics, Government intervention, Statism, tagged Corruption, Cronyism, Economics, Elizabeth Warren, Government intervention, Statism on August 23, 2018| 31 Comments »
Donald Trump wants to make protectionism great again. Bernie Sanders wants to make socialism great again. And if we continue with sarcastic headlines, Elizabeth Warren wants to make cronyism great again. She has a plan, which she explained in a column for the Wall Street Journal and also in this press release on her Senate […]
Thanks to the EBRD, American Taxpayers Are Subsidizing Cronyism in Eastern Europe
Posted in Big Government, Cronyism, Europe, Foreign Aid, International bureaucracy, tagged Big Government, Cronyism, EBRD, Europe, European Bank for Reconstruction and Development, Foreign Aid, International bureaucracy on April 27, 2018| 8 Comments »
Because of their aggressive support for bigger government, my least-favorite international bureaucracies are the International Monetary Fund and the Organization for Economic Cooperation and Development. But I’m increasingly displeased by the European Bank for Reconstruction and Development, which is another international bureaucracy (like the OECD and IMF) that is backed by American taxpayers. And what […]
I’m Happy when Amazon and other Big Companies Prosper – Assuming Profits Are from Capitalism rather than Cronyism
Posted in Big business, Big Government, Corruption, Cronyism, States, Subsidies, tagged Big business, Big Government, Corruption, Cronyism, States, Subsidies on January 23, 2018| 12 Comments »
I explained back in 2013 that there is a big difference between being pro-market and being pro-business. Pro-market is a belief in genuine free enterprise, which means companies succeed of fail solely on the basis of whether they produce goods and services that consumers like. Pro-business, by contrast, is a concept that opens the door […]
Reducing Solyndra-Style Green Cronyism Is another Reason to Be Excited about Tax Reform
Posted in Cronyism, Economics, Environmentalism, Subsidies, Tax Reform, Taxation, tagged Economics, Environmentalism, Green Energy, Subsidies, Tax Reform, Taxation on November 29, 2017| 11 Comments »
I have a fantasy of junking the entire corrupt tax system and adopting a simple and fair flat tax. I have an even bigger fantasy of shrinking the size and scope of the federal government to what America’s Founders intended, in which case Washington wouldn’t need any broad-based tax. But in the real world, where […]
To Fight Cronyism, Let’s Have Separation of Business and State
Posted in Big business, Cronyism, Government intervention, News Appearance, tagged Big business, Cronyism, Government intervention, News Appearance on August 24, 2017| 24 Comments »
In my 30-plus years in Washington, I’ve lived through some very bad pieces of legislation. George H.W. Bush’s betrayal of his “read my lips” promise with the 1990s tax increase. Bill Clinton’s 1993 tax hike, which OMB admitted 18 months later was a failure. All sorts of bad policies under George W. Bush, starting with […]
Occupational Licensing, Government Thuggery, and Greed-Fueled Cronyism
Posted in Cronyism, Government Thuggery, Licensing, Local government, States, tagged Cronyism, Government Thuggery, Local government, Occupational Licensing, State Government on May 7, 2017| 12 Comments »
What word best describes the actions of government? Would it be greed? How about thuggery? Or cronyism? Writing for Reason, Eric Boehm has a story showing that “all of the above” may be the right answer. At first it seems like a story about government greed. When Mats Järlström’s wife got snagged by one of […]
Cronyism, Corruption, and the Obama White House
Posted in Big business, Big Government, Corruption, Cronyism, Obama, tagged Big business, Big Government, Corruption, Cronyism, Obama on May 4, 2017| 9 Comments »
One of the points I repeatedly make is that big government breeds corruption for the simple reason that politicians have more power to reward friends and punish enemies. It’s especially nauseating when big companies learn that they can get in bed with big government in order to obtain unearned wealth with bailouts, subsidies, protectionism, and […]
Government, Cronyism, and the Gambling Industry
Posted in Corruption, Cronyism, Government intervention, tagged Corruption, Cronyism, Gambling, Gaming, Government intervention on December 7, 2016| 11 Comments »
I have a very consistent view of victimless crimes. I don’t approve of drugs and I’ve never used drugs, but I think the social harm of prohibition is greater than the social harm of legalization. I don’t particularly like alcohol and I am almost a teetotaler, but I’m glad there’s now a consensus that the […]
Tesla, SpaceX, SolarCity, and the Cancer of Cronyism (Plus some Post-Election Humor)
Posted in Big Government, Corruption, Cronyism, Statism, tagged Big Government, Corruption, Cronyism, Statism on November 11, 2016| 18 Comments »
It’s easy to define and/or understand most statist policies. We know that a tax increase is when politicians take (or, given the Laffer Curve, try to take) more of your money based on your decisions to work, save, shop, or invest. We know that protectionism is when politicians use taxes and other policies to restrict […]
A Very Depressing Chart on Creeping Cronyism in the American Economy
Posted in Corruption, Cronyism, Government intervention, Statism, tagged Corruption, Cronyism, Government intervention, Statism on July 21, 2016| 45 Comments »
Last year, I shared the most depressing PowerPoint slide in Danish history. Back in 2011, I wrote about a depressing picture of tax complexity in America. Let’s continue with the “depressing” theme today. James Bessen, from Boston University Law School, has an interesting article in the Harvard Business Review about the source of corporate profits […]
Private Investment Leads to Progress, Government Investment Results in Cronyism
Posted in Cronyism, Economics, Free Markets, Government intervention, tagged Cronyism, Economics, Free Markets, Government intervention on May 9, 2016| 32 Comments »
According to Economic Freedom of the World, there are five major factors that determine a nation’s economic performance. Here’s the recipe for growth and prosperity. Rule of law and property rights. Small government. Stable monetary policy. Reasonable regulatory policy. Free trade. This great publication is the first thing I check when I want to see […]
New Video Shows Bailouts Are a Recipe for Moral Hazard and Cronyism
Posted in Bailout, Cronyism, Economics, Financial Crisis, Government intervention, Moral Hazard, Regulation, tagged Bailout, Cronyism, Economics, Financial Crisis, Government intervention, Moral Hazard, Regulation, TARP on June 25, 2015| 40 Comments »
When debating and discussing the 2008 financial crisis, there are two big questions. And the answers to these questions are important because the wrong “narrative” could lead to decades of bad policy (much as a mistaken narrative about the Great Depression enabled bad policy in subsequent decades). What caused the crisis to occur? What should […]
Elizabeth Warren’s Faux Populism vs. Jeb Hensarling’s Genuine Fight against K Street Cronyism
Posted in Big business, Big Government, Corruption, Cronyism, tagged Big business, Big Government, Corruption, Cronyism, Elizabeth Warren Jeb Hensarling on December 15, 2014| 18 Comments »
Let’s compare two politicians, Senator Elizabeth Warren of Massachusetts and Congressman Jeb Hensarling of Texas, to see which one actually has the courage to fight against powerful interest groups. We’ll start with Senator Warren. She portrays herself as the scourge of Wall Street, but it appears that the Massachusetts lawmaker isn’t merely a fake Indian, […]
Obamacare, Cronyism, and Bailouts for Corrupt Health Insurance Companies
Posted in Bailout, Corruption, Cronyism, Health Care, Health Reform, Obama, tagged Bailout, Corruption, Cronyism, Government-run healthcare, Health Care, Health Reform, Obama, Obamacare on July 15, 2014| 32 Comments »
I thought TARP was the sleaziest-ever example of cronyism and corruption in Washington. The Wall Street bailout rewarded politically well-connected companies, encouraged moral hazard, and ripped off taxpayers. Heck, it was so bad that it makes the sleaze at the Export-Import Bank seem almost angelic by comparison. But I may have to reassess my views. […]
A Nauseating Example of Cronyism, Sleaze, and Corruption at the Export-Import Bank
Posted in Big business, Big Government, Corruption, Cronyism, Sleaze, Taxpayer Ripoff, tagged Big business, Big Government, Corruption, Cronyism, Sleaze, Taxpayer Ripoff on April 12, 2012| 122 Comments »
One of my first posts on this blog featured this video showing how big government breeds corruption. I’ve periodically provided examples of how this process works, citing Alaska, Chicago, Wall Street, and Washington. Here’s another example, explicitly showing how big business and big government get in bed together to rape and pillage taxpayers. The sleazy […]
The Economics of Unholy Alliances: Bootleggers and Baptists
Posted in Economics, Public Choice, tagged Economics, Public Choice on March 2, 2021| 4 Comments »
The class-warfare crowd and tax lawyers don’t have a lot in common, but both groups oppose the flat tax. An even stranger unholy alliance involves the War on Drugs, which has the support of both the activists who despise drugs and the criminals who get rich selling drugs in the black market. Professor Bruce Yandle […]
Part IV: Poverty Is a Problem, Not Inequality
Posted in Dependency, Inequality, Poverty, Redistribution, tagged Dependency, Inequality, Poverty, Redistribution on February 13, 2021| 2 Comments »
My series on poverty and inequality (see here, here, and here) focuses on why we should try to help the poor rather than hurt the rich. We’ll continue with that theme in Part IV, which begins with this video by Russ Roberts of Stanford University’s Hoover Institution. Russ makes some great points throughout the video […]
Amazon’s Shameful Effort to Sabotage Small Businesses
Posted in Big business, Cronyism, Government intervention, Minimum Wage, tagged Amazon, Big business, Cronyism, Government intervention, Minimum Wage on February 2, 2021| 4 Comments »
Assuming they behave ethically and earn money honestly, I applaud big companies and their wealthy owners. That’s why I recently defended Jeff Bezos’ large fortune. The owner of Amazon mostly (but not entirely) became rich by providing value to the rest of us. Today, though, I’m very disappointed in Bezos and Amazon. Why? Because the […]
Politician Humor
Posted in Election, Humor, Political Humor, Politicians, tagged Election, Humor, Political Humor, Politicians on January 29, 2021| 4 Comments »
Last October, I wrote a two-part series about America’s venal political class (see here and here). Today’s collection of political satire makes the same point. We’ll start with some wisdom from Charlie Brown. Next, we have a two-frame cartoon. The top frame shows where we were three months ago and the bottom from shows where […]
Coronavirus and Federalism
Posted in Federalism, Government Inefficiency, tagged Coronavirus, Federalism, Government Inefficiency on January 28, 2021| 2 Comments »
I was a big fan of federalism (to the extent it still exists) before any of us ever heard of the coronavirus. And, given the federal government’s incompetent response to the pandemic, I’m an even bigger fan of federalism today. Though that doesn’t mean states are paragons of efficiency and competence. Here’s a map from […]
Compared to the United States, Does Europe Have a “Better” Distribution of Income?
Posted in Class warfare, Competitiveness, Europe, Redistribution, United States, tagged Class warfare, Competitiveness, Europe, Redistribution, United States on January 12, 2021| 19 Comments »
As illustrated by my recent three-part series (here, here, and here), I care about helping the poor rather then hurting the rich. More broadly, I want a bigger economic pie so that everyone can have a larger slice. And I don’t particularly care if some people get richer faster than other people get richer (assuming […]