Who Exploits You More: Capitalists or Cronies?
As a followup to the previous post, in which we discuss how big government creates crony capitalism, here is a video that explains the basics of that concept.
“We need to ask ourselves, If we really want to decrease exploitation in the world, is increasing the power of the state really the best way to do it?”
One common claim is that capitalism exploits the masses for the benefit of the few. Many people who think capitalism exploits workers advocate increasing government power over the economy. Professor Matt Zwolinski suggests, however, that government power may be more exploitative than free-market capitalism. After all, in the marketplace, individuals have power over how they spend their money. The government, however, possesses the power to coerce citizens to pay for policies or programs they may not support, like bank bailouts. Zwolinski argues that bigger government makes citizens more vulnerable to exploitation.
See also our post on Schools of Thought in Classical Liberalism, Part 3: Public Choice
To learn why we are posting this series, click our introduction here.
Government grows and grows. Why? Is there any way to limit government? Dr. Ashford explores the intellectual school known as “public choice.” Public choice theorists believe that politicians are self-interested, meaning they have a vested interest in growing government beyond its proper, limited size. This means that small, concentrated groups (like industry lobbying associations) yield tremendous power over the politics. This leads to subsidies and tax breaks for politically favored industries.
Textual summary . . .