by Ted Rudow III, MA ( Tedr77 [at] aol.com ) Monday Jan 23rd, 2012
Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials.
It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth. Crony capitalism is believed to arise when political cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals. We need not only a reinstitution of Glass-Steagall, but even a more serious limitation on banks. We want to have a way for, you know, average Americans to save money without taking big risks and not be worried about the failure of their banking institution, then there can be some narrow banks who do nothing except take deposits, make long-term loans or short-term loans of a standard, business variety. "Crony capitalism is about the aggressive and proactive use of political resources, lobbying, campaign contributions, influence-peddling of one type or another to gain something from the governmental process that wouldn't otherwise be achievable in the market. And as the time has progressed over the last two or three decades, I think it's gotten much worse. Money dominates politics." David Stockman
Ted Rudow III, MA