Crony Capitalism and the Need for Free Markets

July 22, 2014 – Capitalism, in many minds, is a term that carries a negative connotation.

American libertarian author Richard Ebeling recently wrote an article titled “Free Market Capitalism vs. Crony Capitalism,” where he discusses the often misplaced conception of capitalism, which he says has nothing to do with real free markets or economic liberty.

That conception bore the term crony capitalism, which describes an economy where businesses depend on government to be successful.

In this edition of his audio show with Managing Editor Tiffany Rider, Dr. Paul respond to the question, what would you say is a good example of crony capitalism today? He also offers ways we can help stop the rise of crony capitalism.

“What has to happen is the young people have to grow up knowing that there’s something other than Keynesian economics, and that’s where I get excited because that is what is happening.

“In the campaigns that I had been in here, in the past several years, I was always excited and delighted that young people had heard about Austrian economics and the Federal Reserve and free markets and property rights. So that’s where the change is occurring.

“So if these individuals get out and become the teachers and the writers and the people who write and do the movies and get on television, they will help convince the 51 percent to go along with the idea that it is in their best interest to fight for free markets and not crony capitalism. The intellectual leadership is crucial. Getting the majority to accept what is in their best interest is important.”