How Cronyism is Hurting the Economy

How do we stop crony capitalism and collusion? Professor Jason Brennan argues that while it may seem paradoxical the best solution is to limit government power.

Jason Brennan

Jason Brennan is the Robert J. and Elizabeth Flanagan Associate Professor of Strategy, Economics, Ethics, and Public Policy at Georgetown University. He is the author of Against Democracy (2016), Markets without Limits (2015), Compulsory Voting: For and Against (2014), Why Not Capitalism? (2014), Libertarianism: What Everyone Needs to Know (2012), The Ethics of Voting (2011), and A Brief History of Liberty (2010). Brennan also blogs at Bleeding Heart Libertarians.

It is clear big businesses wield great control over the federal government. How do we stop this so-​called crony capitalism, or collusion? Professor Jason Brennan argues that while it may seem paradoxical the best solution is to limit government power. He provides two reasons for this. First, the power to “regulate the economy” is really the same thing as the power to distribute favors, which corporations will inevitably seek. Second, regulations actually benefit big businesses at the expense of small businesses. Less government power means corporations have less power to compete for, fewer privileges to seek, fewer subsidies to enjoy, and no agencies to capture.

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