Simple explanation of cronyism – the difference between “pro-business” and “free market”

Perhaps we could rephrase that as the difference between “pro-consumer” and “pro-single interest”.

National Review Online discusses how thrilled some self-serving lobbyists are that a certain deal in Washington will benefit members of their focused trade group. It’s a good deal because their members will make money off the deal. See Sometimes, Being ‘Pro-Business’ and ‘Free Market’ Are Opposed.

The article gets into partisan details, which I will omit since I don’t do partisan stuff.

Here’s the money quote:

Being free-market means creating favorable conditions for better and faster economic growth for all. Being pro-business, however, means creating favorable conditions for specific business interests, often at the expense of their consumers or competitors.

If you want favors from Congress or a regulator to benefit your company or you are trying to give your trade group members an advantage, you aren’t pro-market, or free-market, or a capitalist. You are “pro-business.” You are just a crony capitalist.

If you want Congress and regulators to make a level playing field, so that businesses can compete and consumers benefit, you are pro-market or free market. You are a capitalist.

There is a huge difference.

Who benefits? Just you? Or everyone?

Advertisements
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: