Crony capitalism

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Crony capitalism is a left-leaning economic system which is more like an oligopoly than free enterprise. In crony capitalism, investments are not based on morality or true free enterprise. Often in crony capitalism the government picks winners and losers through the use of grants, contracts, loan guarantees, regulations, bailouts and other ways of extending favors to friends while penalizing competitors.

Crony capitalism also can work to the disadvantage of workers and consumers, for example when coal burning electric plants import cheaper coal because of lower foreign labor costs, American coal miners are laid off due to EPA regulations, and consumers see no reduction in electric rates.

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