Crony Capitalism: it takes two to tango

He says its the most frequent argument he gets into. Is Cronyism Private Enterprise’s Fault or the Government’s?. For those on the left, any incident of a business taking advantage of the regulatory environment is all the fault of the business and a clear indication of a need for more governmental control. The Coyote points out that it takes two to tango and a better approach might be to not offer the incentive.

“But the implication that this is all the fault of corporations is just wrong, as is the the inevitable Progressive conclusion that somehow more government regulation and powers are necessary to combat this.

The Left has been the prime cheerleader over the past decades in creating the Federal behemoth that not only allows this to happen, but actively facilitates it. We have created a government whose primary purpose is to redistribute spoils from one group to another.

I put it this way – “invest in customers rather than DC bureaucrats” – because every new regulation, every new government power over commerce is essentially a dis-empowerment of consumers in the marketplace. Nowhere is this more true than in pharmaceuticals, where the government tells consumers what they can and cannot buy.

In a free market, accountability is enforced by consumers defending their own best interests and new competitors seeking fortunes by striving to serve consumers better than market incumbents. Every government intervention is essentially saying to consumers that the government is going to make yet another decision for them. So, having taken over so many decisions of consumers in those huge office buildings in DC, is it any wonder that companies go to DC to market to bureaucrats rather than bother marketing to consumers?”

The question centers on matters of incentive and accountability. The more power the government expresses, the more incentive there is to manipulate it. In a free market, it is a companies customers who have the power and they can hold the business accountable in their choice of product and service.

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