Question

Using specific examples of crony capitalism in the current political-economic system, discuss possible remedies.

Answer 1

Remedies will draw on all aspects of this vicious cycle of public disillusionment and economic costs. Reducing the scope and weight of government intervention in the economy would minimize and lighten the touch-points by which negative deals are having their effect. Changes must be made in each major component of the federal budget necessary in any case to achieve long-term fiscal sustainability. High on the list of improvements we propose is the reduction or cancelation of many of the incentives that could be categorized as crony deals including appropriated spending, tax subsidies, and even possible buying exploitation under certain benefit programs

A regulatory process that would be advantageous in its own right could be simplified, but could also eliminate access points where crony deals could intervene in the marketplace. Amendments to the legislative process which would raising the amount of anticompetitive tax or spending law adoption incentives. Despite strong differences of opinion on these issues, the current controversy surrounding campaign finance policy decisions is more based on the merits and less on the influence of money in politics.

Reducing money's role in politics would also reduce the potentially undue deference that elected policymakers and candidates must show to lobbying interests, which are also potential sources of funding in the now seemingly endless arms race of political spending. Ensuring transparency and due diligence and ultimate action on our serious public problems would improve the performance of our economy and renew faith in capitalism among our people.