Crony Capitalism Is NOT Capitalism

Dom Armentano

5/10/2010

It’s all the current fashion to dump on “capitalism.”

It was the greedy free market, supposedly, that created both the housing bubble and the housing bust and led, inevitably, to the “great recession.” Capitalism, according to most liberal pundits (and even Alan Greenspan in a bad mood), is an inherently risky and unstable system that requires government regulation to correct its flaws and moderate its excesses.

Let me dissent sharply from that conventional wisdom and argue that what talking heads are calling “capitalism” is actually “crony capitalism” and that it is crony capitalism that is responsible for most of our current economic difficulties.

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