Watch Out for Crony Capitalism


One need not look very far for examples of detrimental outcomes in the US Healthcare System that seem related to a desire to make money. Huge corporations push potentially lethal medicines down our throats and fund doctors to make us feel terrible if we don’t follow their every whim. Take this medicine, take that medicine, it’s all about taking the medicine and being diagnosed with something, anything, from depression to ADHD to whatever mysterious disease you can think of. The situation is extremely pathetic. Pathetic puts it lightly; the American public is being murdered from “the situation.”

No reasonable person can deny that there are big problems in the US like I have just described. Because of this fact, President Obama and every other conceivable public policy designer makes programs to stifle that apparently nasty desire to make money. Money is bad, they seem to say, just look at the results!

I, however, would like to ask one thing of Obama and the rest: How is man supposed to live? Shall he place himself in the arms of the government and expect them to provide his every need, shielding him from that nasty instinct to really do something in the world? They may perhaps in theory not agree, but, just like the situation of the healthcare system, can anyone actually deny their practice? No, in truth, government dependence is exactly  the government’s solution to problems like systematized healthcare madness.

Of course, basic principles of existence mean that since everyone can not have everything, otherwise known as scarcity, as nice as getting all of our needs from the government sounds, it can’t happen. What really is the problem, then? The problem is that the government ever gave preferential treatment to anyone, any corporation, that is, in the first place. The problem is crony capitalism, fake liberty (sound familiar?), the most devious of all interventions since it goes unnoticed. Regulatory favoring of corporations that are big and have big money, like Monsanto and Wal-mart, huge taxes that small businesses can not afford, regulatory burdens for those same small businesses of thousands and thousands pages; all of these things really mess with the economy through the basic mechanism of price floors and ceilings. Each of these mechanisms distorts the natural balance of quantity supplied and quantity demanded in any particular market, and all possible scenarios end up with someone not getting what they need in shortages and supply overstocks.

Fixing governmental intervention by more intervention is technically the definition of insanity; that is, doing the same thing over and over and expecting different results. Be warned, reader, that governmental and popular statements about the dangers of unbridled capitalism, the terrible ups and downs of the business cycle, all of that propaganda is nonsense. The “capitalism” railed against and seemingly so dangerous is nothing more than crony capitalism, which really is not capitalism at all. Watch out for your liberty.


Caleb R. Newton