Crony Capitalism Quotes

“As long as government has the power to regulate business, business will control government by funding the candidate that legislates in their favor. A free-market thwarts lobbying by taking the power that corporations seek away from government! The only sure way to prevent the rich from buying unfair government influence is to stop allowing government to use physical force against peaceful people. Whenever government is allowed to favor one group over another, the rich will always win, since they can "buy" more favors, overtly or covertly, than the poor.”
― Mary J. Ruwart

“Some capitalism suffers from cronyism. All of socialism is perverted by the crony statism of the powerful few.”
― A.E. Samaan

“Yet, though all the changes we are observing tend in the direction of a comprehensive central direction of economic activity, the universal struggle against competition promises to produce in the first instance something in many respects even worse, a state of affairs which can satisfy neither planners nor liberals: a sort of syndicalist or "corporative" organization of industry, in which competition is more or less suppressed but planning is left in the hands of the independent monopolies of the separate industries. This is the inevitable first result of a situation in which the people are united in their hostility to competition but agree on little else. By destroying competition in industry after industry, this policy puts the consumer at the mercy of the joint monopolist action of capitalists and workers in the best organized industries.”
― Friedrich A. Hayek, The Road to Serfdom

“...some student asked if he [Larry Summers] didn’t have essentially the same relationship with Bob Rubin. Wasn’t Summer’s opposition to capital controls just a sop to Wall Street banks, which wanted to recoup their risky investments regardless of how doing so affected the country in which they had invested?

“Summers just lost it,” said one audience member, a business school student. “he looked at the person and said, “you don’t know what you’re talking about and how dare you ask this question of the president of Harvard?”
― Richard Bradley, Harvard Rules: Lawrence Summers and the Battle for the World's Most Powerful University – Sex, Ambition, and Elite Power at America's Institution

“Wikipedia: Crony Capitalism

Crony capitalism is an economic system in which businesses thrive not as a result of risk, but rather as a return on money amassed through a nexus between a business class and the political class. This is often achieved by using state power rather than competition in managing permits, government grants, tax breaks, or other forms of state intervention over resources where the state exercises monopolist control over public goods, for example, mining concessions for primary commodities or contracts for public works. Money is then made not merely by making a profit in the market, but through profiteering by rent seeking using this monopoly or oligopoly. Entrepreneurship and innovative practices which seek to reward risk are stifled since the value-added is little by crony businesses, as hardly anything of significant value is created by them, with transactions taking the form of trading. Crony capitalism spills over into the government, the politics, and the media,[3] when this nexus distorts the economy and affects society to an extent it corrupts public-serving economic, political, and social ideals.”
― Wikipedia Contributors

“This longstanding bipartisan revolving door between government and business reflects the inconvenient realities of life in a capitalistic democratic republic. On the one hand, when work- ing well, this revolving door allows businesses and government to draw on talented, ethical individuals from the private and public sectors to serve the interests of both shareholders and citizens. On the other hand, this revolving door can lead to corrosive cronyism and corruption that eats away at the integrity of both business and government as narrow interests are served, to the detriment of shareholders and citizens.”
― Tom C.W. Lin, The Capitalist and the Activist: Corporate Social Activism and the New Business of Change

“Some of the 'richest' parts of India and the world also paradoxically happen to be the poorest because their scarce (and hence, very valuable) natural resources have attracted the most corrupt and venal entrepreneurs to these areas.”
― Paranjoy Guha Thakurta, Gas Wars: Crony Capitalism and the Ambanis