Monday, September 22, 2014

Crony Capitalism and Progressive Desperation

If you hang out at the intersection of Politics Avenue and Economics Boulevard, as I frequently do, you've noticed the ugly fusion of welfare state government and major corporations we have come to call "crony capitalism."  It was a mystery to me why progressives, who routinely castigate capitalist "greed," should bind themselves so closely to the corporations they revile.  Looking deeper what I found was that crony capitalism for progressives the world over is an act of desperation; an unmistakable signal that the welfare state they so cherish is failing.
I realized, for starters, that the benefits welfare state is inherently unstable, not because of its politics -- people will tolerate, even embrace an incredible level of regulatory coercion -- but because of its inherent economics.  Unlike dictatorial socialism built on bayonets, benefits socialism is built on redistributive entitlements.

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