Economist on Crony Capitalism vs. Capitalism and Why it Matters
INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Steven Horwitz.
The differences between “capitalism as free enterprise” and “crony capitalism” are often overlooked by critics of capitalism and sometimes by its defenders. What the left means by capitalism is often “whatever is in the interests of capital,” regardless of whether it creates value for others or not. So when capitalists seek subsidies, bailouts, and monopoly privileges, the left sees that as capitalism. But classical liberals and other defenders of free enterprise argue that true capitalism is not about seeking favors from government but instead about competing fairly in the market to please consumers. Crony capitalism is, in many ways, closer to the economic systems associated with socialism and fascism than it is to true capitalism. Defenders of free enterprise need to reclaim our opposition to monopoly privileges of all sort and see the liberal economic order as one that lacks such privilege and is inclusive to anyone who can create value for others.
Jonah Goldberg, Liberal Fascism: https://www.amazon.com/Liberal-Fascism-American-Mussolini-Politics/dp/0767917189
Don Lavoie, National Economic Planning: What is Left? https://www.amazon.com/National-Economic-Planning-What-Left/dp/1942951264/
Michael Tanner, The Inclusive Economy https://www.amazon.com/Inclusive-Economy-Bring-Wealth-Americas/dp/194864701X
Mike Munger and Russ Roberts Econtalk podcast on crony capitalism: https://www.econtalk.org/michael-munger-on-crony-capitalism/
According to a statement, “Steven Horwitz is the Distinguished Professor of Free Enterprise and Director of the Institute for the Study of Political Economy in the Department of Economics in the Miller College of Business at Ball State University in Muncie, IN. He is also an Affiliated Senior Scholar at the Mercatus Center in Arlington, VA, a Senior Fellow at the Fraser Institute of Canada, and the economics editor at the Cato Institute’s libertarianism.org. He is the author of four books, including most recently Austrian Economics: An Introduction. He has written extensively on Hayek and Austrian economics, monetary theory and history, and American economic history, and is a frequent guest on radio and cable TV programs. He is also the 2020 recipient of the Julian L. Simon Memorial Award from the Competitive Enterprise Institute.”
LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE