State of South Carolina Archives: on Corporations

Thomas Ravenel: Crony capitalism is not true free market capitalism

Crony capitalism--our current system in which special interests line the campaign coffers of politicians such as Lindsey Graham in an effort to cut off competition from upstarts through government subsidies and increased regulation--is not true free market capitalism. A perfect example of such cronyism is the Export-Import bank, which serves as a slush fund, doling out taxpayer-guaranteed loans to a select few foreign corporations that then purchase goods from a select few American corporations. The benefits of these subsidies go overwhelmingly to the shareholders of those few companies and their top executives, not to the American people. This is not true capitalism, in which no such specialized subsidies exist. Cronyism is a command economic boondoggle benefiting a select few while leading to reduced competition and higher prices for the rest of us. Such government-funded schemes undermine the invisible hand of the free market and must end.
Source: 2014 S.C. Senate campaign website, Sep 1, 2014

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