Cronyism, Corporate Welfare, and Inequality
Acton Line
The Difference Between Market Competition and Competition for Rents
In a dynamic economy, you're not going to have the same people on top. The goal of profit maximization ensures that over the long run there will be winners and losers. I think where cronyism sits, it's not that necessarily creating more TSA's of the world. But we're blurring the profit and loss mechanism. And these firms are using kind of political power to the extent that they can to kind of insulate themselves from the vicitudes of markets. We don't know if Apple worries about taking risks with their brand name in 50 years? That should concern us as much as government does.
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