Draining The Swamp – Part X – Crony Capitalism
Breitbart has an interesting article on its website today:
The proposed reforms would “eliminate the big tax breaks cities and states receive on money borrowed to build stadiums meant to entice or prevent sports franchises from moving to another city”.
Duh! This is a no-brainer for me. Why should the government give a subsidy to ANY business? The giving of a subsidy is not what the government in a free market economy should be doing. Period. A free market should be just that, a free market, not a subsidized market.
If the NFL, or any sports franchise, can pay the players multi-million dollar salaries and still make good profits, it doesn’t need a subsidy, nor should ANY business get a subsidy. The free market is about providing a product, or service, to the public that the public is willing to pay for. It’s called a mutually beneficial trade! If you make shoes that I think are good, and priced right, I will buy them. Plain and simple. Why should I, as a taxpayer, be forced to subsidize those shoes?
By the same token, why should I, the taxpayer, subsidize any business? If they provide the products or services I want, at prices I am willing to pay, then I will buy what they offer, if I need, or want, it. That is basic economics. That is the free market.
Crony Capitalism is the favoring of a given company, or industry, by giving them subsidies, monopoly status, or even some form of preferred status, which harms the competitive status of those competing with “preferred” businesses. It is the giving of preferential treatment, which harms all competitors. The government then dictates the winners and losers.
Benito Mussolini called his brand of fascism, Crony Capitalism.
Who gets hurt by Crony Capitalism? The little guys and the new startups, who are competing with subsidized businesses.
We don’t have a free market in the USA. We have a Crony Capitalist market, as there are subsidies given to many businesses that prevent the entry of new companies into a given market, or that protect and perpetuate certain large businesses at the expense of the little guy.
Do you want a free market? End the subsidies and regulations that discourage the little guy and the entry of new companies who want to compete but are faced with prohibitive hurdles.