Free Market Capitalism vs. Crony Capitalism

"John Broder of The New York Times has an interesting piece on Al Gore’s financial profit tied to his global warming alarmism and push for renewable energy. Gore’s venture capital firm invested in Silver Spring Networks, a company that makes hardware and software to improve efficiency in the...

"The United Auto Workers union urged senators on Monday to reject any attempt to block a “cash for clunkers” proposal designed to generate new auto sales.

The Senate is expected to consider the proposal this week to provide vouchers to consumers who turn in their gas-guzzling cars and trucks for the purchase of more fuel-efficient vehicles. Lawmakers secured $1 billion for the proposal...

"It may be a difficult case to prove, but the complaint filed last month by the National Labor Relations Board against Boeing is a welcome effort to defend workers’ right to collective bargaining."

"Big banks are bad for free markets. Far from being engines of free enterprise, they are conducive to what might be called 'crony capitalism,' 'corporatism,' or, in Jonah Goldberg’s provocative phrase, 'liberal fascism.' There is a free-market case for breaking up large financial institutions: that our big banks are the product, not of economics, but of politics.

There’s a long debate...

"Reporting from Washington— Over the last year, the Obama administration has aggressively pushed a $433-million plan to buy an experimental smallpox drug, despite uncertainty over whether it is needed or will work.

Senior officials have taken unusual steps to secure the contract for New York-based Siga Technologies Inc., whose controlling shareholder is billionaire Ronald O. Perelman,...

"It’s all the current fashion to dump on 'capitalism.'

It was the greedy free market, supposedly, that created both the housing bubble and the housing bust and led, inevitably, to the 'great recession.' Capitalism, according to most liberal pundits (and even Alan Greenspan in a bad mood), is an inherently risky and unstable system that requires government regulation to correct its flaws...

"Argentina’s ranking in The Wall Street Journal/Heritage Foundation’s Index of Economic Freedom—now 135th out of the 179 countries ranked in the Index—has declined steadily in the seven years since President Cristina Fernández de Kirchner and her husband, former President Nestor Kirchner, took power. It is by far the lowest ranked G-20 nation. Recently Charles Krauthammer neatly summarized why...

"Sen. Chris Dodd’s financial regulatory reform bill, on which the Senate is slated to take a cloture vote this afternoon, has been the subject of much criticism of late, primarily for what opponents say amounts to a de facto institutionalization of 'too big to fail' with regard to the biggest power players in the financial sector."

"Hundreds of thousands of dollars in campaign contributions made by Goldman Sachs, the New York investment firm facing civil fraud charges, are becoming an issue in this year's congressional election.

"A few weeks before playing a central role in fraud charges against Goldman Sachs, hedge fund titan John Paulson invited colleagues to a fundraiser for Senator Chuck Schumer -- 'one of the few members of Congress that has consistently supported the hedge fund industry' -- according to a copy of the invitation obtained by POLITICO."...

"The defenders of free markets are often viewed as apologists for big business. Regulation of business is seen as necessary to the welfare of the public to prevent exploitation by selfish business people. Such a view would be hard to square with reality, with history both recent and distant.

In reality, business often welcomes regulation and openly lobbies for it. Business often doesn't...

"The 'partnership of government and business' is a new term for an old, old condition. We often fail to realize that the point of much of Big Government is precisely to set up such 'partnerships,' for the benefit of both government and business, or rather, of certain business firms and groups that happen to be in political favor.

We all know, for example, that 'mercantilism,' the...

"Mark Twain famously wrote, 'There is no distinctly native American criminal class except Congress.' Peter Schweizer's new book, 'Throw Them All Out,' reveals this permanent political class in all its arrogant glory. (Full disclosure: Mr. Schweizer is employed by my political action committee as a foreign-policy adviser.)

Mr. Schweizer answers the questions so many of us have asked. I...

"J.P. Morgan Chase for the first time convened its board in Washington this summer, calling the directors to a meeting at the downtown Hay-Adams hotel, then dispatching them to Capitol Hill for meet-and-greets.

Last month, a firm run by the billionaire investor Wilbur Ross hired the head of Washington's top mortgage regulator to pick through the wreckage of the housing bust looking for...

"The collapse of MF Global, the brokerage dealer headed by former New Jersey Governor and Goldman exec Jon Corzine, may seem like just another case of Wall Street fat cats paying the price for their speculation (actually, though Corzine may have run the firm into the ground, he’s reportedly going...

"One of the law firms hired to provide legal work for the Treasury Department on a multibillion-dollar federal loan program also lobbied Congress for a private client pushing to expand the same government initiative, records show.

The Treasury Department retained Sonnenschein, Nath & Rosenthal LLP more than a year ago to provide legal advice on the Federal Reserve’s Term Asset-...

"'Beltway Earnings Make U.S. Capital Richer Than Silicon Valley.' According to the latest Census figures, Washington, D.C. is now the wealthiest metropolitan area in the United States.

That's good news for local property values, but I can't say it fills me with hometown pride. After all, Silicon Valley's wealth was earned -- just rewards voluntarily given for producing innovations that...

"Today the Bureau of Labor and Statistics released its monthly jobs report showing that the U.S. economy added only 103,000 jobs this December. With the unemployment rate now at 9.4%, this marks the 20th month in a row that the unemployment has been over 9 percent, a post–World War II record. You are going to hear a lot of noise from...

"As the once-formidable Enron Empire continues to implode--and new revelations appear daily about the inner workings (and apparent financial shenanigans) of this firm--we are treated, not surprisingly, to the wrong story by the mainstream news media and their associates from the political classes. It is bad enough to see a huge firm go bankrupt, but what makes this situation even worse is the...

"When President-elect Obama came to Washington in late 2008, he was outspoken about the need for an economic stimulus to revive a struggling economy. He wanted billions of dollars spent on 'shovel-ready projects' to build roads; billions more for developing alternative-energy projects; and additional billions for expanding broadband Internet access and creating a 'smart grid' for energy...

"Despite frosty relations with the titans of Wall Street, President Obama has still managed to raise far more money this year from the financial and banking sector than Mitt Romney or any other Republican presidential candidate, according to new fundraising data.

Obama’s key advantage over the GOP field is the ability to collect bigger checks because he raises money for both his own...

"As 'Occupy Wall Street' continues to grow globally, many wonder what is causing the movement in the first place and what the outcome will be. The naming of the movement, related to Wall Street where it all started, does not do justice to the real issues. Yes, the original protests started with dissatisfaction at lavish bonuses and salaries in the financial sector, when seemingly little...

"President-elect Obama, you have been a strong and eloquent defender of property rights and the rule of law, recognizing that they undergird Americans' freedoms and protect us from unjust government actions. These protections may be most important to those of modest means, who are the disproportionate victims of government takings of property. As explained by the NAACP and other civil rights...

"If capitalism was the most influential single economic and social force of the 20th century (and continuing today), there is no better guide to understanding its power and complexity than famed economist Joseph Schumpeter, says Harvard Business School's Thomas K. McCraw. 'I think Schumpeter is the most penetrating analyst of capitalism who ever lived. He saw things other people didn't see...

"Government spending drives taxes, deficits, debt and inflation, so it’s at the core of our economic problems. What to do about runaway spending? The tendency is to imagine that it might be controlled by electing the right politicians, enacting a law like a balanced budget amendment, passing a spending limitation ballot initiative, establishing a super committee or coming up with some kind...

"To speed economic recovery in Asia and promote the economic well-being of the United States, the Clinton Administration should advance further liberalization in free trade with and investment in Asian countries. Liberalization would undermine the policies of "crony capitalism" that caused the recent financial panic in Asia and, at the same time, encourage Asian governments to adopt the...

"After President Barack Obama entered the White House in 2009, U.S. embassies around the world apparently felt that foreigners still did not know enough about him, despite the unprecedented blaze of global publicity surrounding his election. As has been remarked, U.S. public diplomacy in the age of Obama often amounts to the same thing as publicity for the President himself, with American...

"The Obama administration’s game plan for passing their financial regulatory reform plan is clear: ignore the details of their bill, demonize Wall Street, and cast conservatives as the pawns of big bankers. But as Politico reports today, there’s a complication in their battle plan: 'The Democratic Party is closer to corporate...

"The Clean Energy Deployment Administration (CEDA) proposed in the Clean Energy Financing Act would act as a 'green bank' to provide loan guarantees to energy and automotive projects that Washington deems worthy. Similar to President Obama’s proposed infrastructure bank, in effect, CEDA would distort the energy market by redirecting capital inefficiently and create unlimited taxpayer liability...

"As soon as the federal government announced its trillion-dollar bailout (for starters) of Wall Street plutocrats, defenders of the bailout pulled out what they apparently believed was their secret weapon: the myth of Alexander Hamilton as the alleged inventor of American capitalism. Hamilton, they said, would approve of the bailout. Case closed. How could anyone dispute 'the architect of the...

"In 1978, to the laughter of many and the derision of a few, I wrote a book called, 'The Downfall of Capitalism and Communism,' which predicted that Soviet communism would vanish around the end of the century, whereas crony or monopoly capitalism would create the worst-ever concentration of wealth in its history, so much so that a social revolution would start its demise around 2010. My...

"Throughout the painful and paradoxical existence of Occupy Wall Street (OWS) we have been told by those in the mainstream media, as well as by sympathetic politicos, that at its root, at its genesis, the OWS Movement was both organic and legitimate. We were told that the movement was exclusively about a rebellion against high unemployment and crony Capitalism, even as those championing the...

"This week, Sarah Palin gave a terrific speech in Indianola, Iowa. In it, she tore into the Washington political class. Men and women in government get wealthy by 'bail(ing) out their friends on Wall Street and their corporate cronies...reward(ing) campaign contributors...buy(ing) votes via earmarks...And there is a name for this: It's called corporate crony capitalism...It's the collusion of...

"For over four decades, Richard Posner has made major contributions to the case for limited government, particularly in the regulatory realm. He is one of the most economically literate lawyers in the law-and-economics movement. However, the financial shocks since 2007 have produced in him a crisis of confidence — and, apparently, a decline in his economic acuity.

He therefore did his...

"To correct that oversight, here is a breakdown of the $2.1 million in campaign donations provided by individuals associated with the business and labor interests now represented on the President’s Export Council, as reported at opensecrets.org and fec.gov."

"Tax-increment financing (TIF) is an increasingly popular way for cities to promote economic development. TIF works by allowing cities to use the property, sales, and other taxes collected from new developments — taxes that would otherwise go to schools, libraries, fire departments, and other urban services — to subsidize those same developments.

While cities often claim that TIF is '...

"It is common these days for those who feel 'exploited by the system' to lash out at capitalism as the cause of their economic woes. When their complaints are examined, however, what stands out is not anger at an actual free-market capitalist system, but frustration with the prospect of an almost insurmountable economic system of privilege based on cronyism. In...

"On July 2, some 60 million Mexican citizens will go to the polls to elect their next president. Perhaps at no other time in recent history will an election have been so important and so scrutinized as this one. Mexico is clearly in transition. Domination by the ruling Institutional Revolutionary Party (PRI) is no longer a given. Last October, the PRI held its first primary instead of...

"How does government regulation influence the structure of industries? In the coal mining industry increased safety can be provided with personal protection devices or with engineering controls; but the type of safety standard imposed is important because larger producers have a comparative advantage complying with engineering controls. Time series evidence...

"Many attribute the differences in economic performance across countries to factors such as natural resources, climate, education, culture, colonialism, or just dumb luck. Although each of these factors is certainly important, many economists have come to believe that institutions are far more significant in explaining economic development. After all, the U.S.S.R. had far more generous...

"During the third quarter of 2011, more than 400 companies, unions, trade associations and other groups reported lobbying the Joint Select Committee on Deficit Reduction, popularly known as the debt supercommittee, according to a new analysis by the Center for Responsive Politics...

"The Federal Estate Tax (aka, death tax) is currently repealed, due to a provision in the 2001 Economic Growth Tax Relief and Reconciliation Act (EGTRRA). However, on January 1, 2011, the tax comes back at the rate of 55 percent on all estates above $1 million.

Estate tax advocates often portray their fight as a struggle for fairness against greedy billionaires and spoiled heiresses...

"A foreign exchange crisis in 1991 induced India to abandon decades of inward-looking socialism and adopt economic reforms that have converted the once-lumbering elephant into the latest Asian tiger. India’s gross domestic product (GDP) growth rate has averaged over 8 percent in the last decade, and per capita income has shot up from $300 to $1,700 in two ...

"The recent Asian crisis had two main causal components: a cyclical component and a structural component. The cyclical component derives from mistakes of macroeconomic policy—mainly monetary policy—which can be solved relatively easily, at least from a technical perspective, although the political impediments to solving the monetary problems should not be underestimated. The cyclical component...

"Under the Obama administration, the influence and involvement of trade unions in government policy decisions has surged to unprecedented levels. Some of the more egregious examples include the proposed Employee Free Choice Act, which abolishes the secret ballot among workers deciding on union representation and imposes forced interest arbitration of contract disputes; the selective protection...

"Federal contracts are worth billions and billions of dollars. Those contracts are supposed to be awarded impartially, generally to the lowest and best bidder."

"Peter Schweizer doesn't have many friends on Capitol Hill these days. So few, in fact, that he was told not to even show his face at a congressional hearing on insider trading — even though that hearing was the direct result of his new book, 'Throw Them All Out.'

Schweizer, a fellow at the Hoover Institution, spoke at The Heritage Foundation this week about his research on the '...

"Though many (especially on the left) blame capitalism for so much of today's problems. But I believe what they are incorrectly calling capitalism, is actually what I call 'corporatism'. Many of my fellow libertarians call it 'crony capitalism', but I think that muddy's the issue by using the word 'capitalism' in a different context.

I'm basically responding to a request from a very...

From the General Motors bailout to subsidies for Solyndra, crony capitalism is as serious a threat to liberty, free markets and civil society as ever. Cato Institute Senior Fellow Tom G. Palmer recently discussed The Morality of Capitalism (...

"How is our tax code influenced by special interests?

Randall Holcombe, Professor of Economics explains how cronyism in the tax code can benefit special interest groups, and he discusses how we can address this cronyism by reducing the spending power of the government."

"Russian philosopher Leonid Nikonov explains the differences between socialism, cronyism, and free market capitalism. Nikonov is a contributor to The Morality of Capitalism, a new book that is being distributed worldwide by the Atlas Network and the Students for Liberty."

"Former BB&T Chairman and CEO John A. Allison discusses how mandates like Sarbanes Oxley and the Patriot Act helped cause the housing meltdown and financial crisis. He spoke at the Cato Institute's 29th Annual Monetary Conference held November 16th, 2011."

Mark Calabria discusses the financial regulation reform bill and its effects on the markets.

"The Occupy Wall Street movement expresses valid frustrations, but do the protesters aim their accusations in the wrong direction?

Economics Professor Chris Coyne draws the distinction between crony capitalism and legitimate capitalism. Crony capitalism is government favoritism fueled by handouts and is responsible for the plight of the 99%. Legitimate capitalism, on the other hand,...

"The triumph of crony capitalism occurred on October 3rd, 2008. The event was the enactment of TARP — the single greatest economic-policy abomination since the 1930s, or perhaps ever.

Like most other quantum leaps in statist intervention, the Wall Street bailout was justified as a last-resort exercise in breaking the rules to save the system. In the immortal words of George W. Bush, our...

"Washington is riddled with corruption, much of which actually is legal. The politicians and other insiders claim that more ethics laws and lobbying rules are the solution. Some even say the only answer is campaign finance laws that restrict 1st Amendment rights to fully participate in the political process. This Center for Freedom and Prosperity video explores a different hypothesis and...

This spreadsheet lists institutions which have received funds as part of the American Recovery and Reinvestment Act from various government agencies, but failed to comply with the Act's stipulated reporting procedures. The document lists the names, the award amounts and dates, as well as the awarding agency.

The Occupied Wall-Street Journal was a publication compiled and printed by the protesters and their supporting organizations in October of 2011 during the protests against corporate/government collusion.

Thomas Jefferson speaks about the foreign perception of the United States.

"In her shocking new book, Malkin goes where the mainstream media refuse to tread. She digs deep into the records of President Obama's staff, revealing corrupt dealings, questionable pasts, and abuses of power throughout his administration."

"The Audacity of Hope is Barack Obama's call for a new kind of politics—a politics that builds upon those shared understandings that pull us together as Americans. Lucid in his vision of America's place in the world, refreshingly candid about his family life and his time in the Senate, Obama here sets out his political convictions and inspires us to trust in the dogged...

"Newt Gingrich’s New York Times bestseller, To Save America, is now in paperback! Featuring a new chapter and completely updated throughout. To Save America will offer the first critical analysis of the 2010 elections and will reveal what Republicans must do to get the country back on track. 'History is repeating itself,' says Newt. 'Republicans took back the House, just like we did in 1994.'...

"Breitbart.com offers real-time access to top news and analysis sources. You can monitor up-to-the-minute feeds from wires, newspapers, networks, key blogs and more. And there are multiple options for exploring topics by channel. While some news sites select stories for the user and others allow users to rank favorite news stories, Breitbart emphasizes user access to the raw news feeds -- kind...

"Jack Abramoff's rollercoaster life story might as well be a major motion picture. In fact, it is. Already two major motion pictures based on Abramoff's story have hit the silver screen. Dubbed on the cover of Time Magazine as the 'Man Who Bought Washington', Abramoff rose to become one of America's most successful and prominent lobbyists, before becoming enmeshed in the most harrowing...