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Solutions to the insidious problem of crony capitalism


<p>Flickr – erin m</p>

Flickr – erin m

The Center for Economic Development (CED) released a report last week detailing the price we all pay when the campaign finance system is rigged to allow corporations and and special interests outsize influence over policy. “Crony Capitalism: Unhealthy Relations Between Business and Government” discusses three trends which have combined to distort our economic system: the growth of government, rising campaign costs and the increasing power of lobbyists.

The consequences of these interconnected trends, according to CED, reduce economic efficiency and harm the public at large. On the bright side, the report also recommends some achievable remedies to this problem like increased transparency.

Crony capitalism is one of those topics that riles up reformers across the political spectrum. From the Koch Brothers to Ralph Nader, critics of crony capitalism deride the government’s involvement in for promoting the interests of a privileged few over the interests of all people.