Wednesday, October 26, 2011

Life Is Good in the Capital of Crony Capitalism | Gene Healy | Cato Institute: Commentary

Life Is Good in the Capital of Crony Capitalism | Gene Healy | Cato Institute: Commentary:
This city's wealth is largely based on what public choice economists call "rent-seeking," using the political process to rig the game in one's favor — through subsidies, tariffs, regulatory advantages, and other benefits unavailable via free and fair competition.

"The rent-seeking is too damn high!" economist Alex Tabarrok quipped upon reading the Bloomberg report. True enough: spending on lobbyists set another record last year, at $3.5 billion, according to the Center for Responsive Politics.