Klavan On The Culture » Picking Losers – My New Video on Cronyism.

I agree with Klavan’s explanation. “Greedy” capitalists acted the way they did for the most part because the government rigged the game to encourage a specific outcome.

Crony capitalism is evil, because it distorts people’s behavior. that’s also why I favor eliminating subsidies of any kind that “nudge” us toward a specific outcome.

That especially includes agricultural subsidies, which I believe are responsible for our high food prices. After all, without sugar subsidies companies would not have started using high fructose corn syrup, which is less healthy than sugar (although there is some disagreement on that – surprise! -from the crony capitalists that benefit from the subsidies). In turn ethanol subsidies distorted corn prices, affecting the price of just about everything we eat.

Then there is the whole issue of higher education subsidies, which have distorted college costs and contributed to the current crisis in student loans. Get rid of them all.

About these ads