Wednesday, July 11, 2012

New Paper: Obama’s Crony Capitalism Turns America Into Europe

New Paper: Obama’s Crony Capitalism Turns America Into Europe

A new paper states that government favoritism, which is often referred to as crony capitalism or corporatism, is destroying the free enterprise system. Matt Mitchell, a senior research fellow at George Mason University’s Mercatus Center, has written “The Pathology of Privilege: The Economic Consequences of Government Favoritism.”

 

 

In it, Mitchell cogently argues that privileges offered by the government to big business, in the form of bailouts, monopoly status, favorable regulations, subsidies, loan guarantees, targeted tax breaks, protection from foreign competition, and noncompetitive contracts, are killing the impetus for small business owners to innovate and enter the market.