The Insidious Economic Drag of Crony Capitalism

TREND # 6 For as long as capitalism has existed, so has crony capitalism. If capitalism is a bright beacon that brings equal opportunity and prosperity to the world’s economies, then crony capitalism is the dark shadow where insiders receive unequal benefits. One particularly blatant example of crony capitalism is the federal government’s support of the American sugar industry. The Washington Post reports that sugar subsidies have been around since the Depression, and that the current program includes a mix of “import quotas, price floors, and taxpayerbacked loans to prop up . . . domestic growers.”1 It’s probably no coincidence that those domestic producers of sugar just happen to be among the biggest contributors to politicians’ war chests. According to...

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