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.
The overpriced NFL is a prominent example of crony capitalism, such that the Washington Commanders (the politically correct new name for the Washington Redskins) could fetch $6 billion in a sale in 2023 even though the game is little more than obese people banging their heads together while addicted fans and gamblers watch.
Examples of crony capitalism include the heavily taxpayer-subsided NFL, when enriches its billionaire owners, and Michael Bloomberg's vast fortune from selling overpriced stock market video terminals to Wall Street investment banks. One of the poorest and most crime-ridden cities in the United States, St. Louis, Missouri, is in heavy debt due to building a stadium for the billionaire owner of the Los Angeles Rams, who subsequently moved the team away. Then attorneys were enriched as part of a massive settlement when St. Louis sued the NFL over the move.
- Philipp, Joshua (August 7, 2019). The Corrupt Romance Between Big Business and Socialism. The Epoch Times. Retrieved August 7, 2019.
- Burying crony capitalism: The courts strike a blow for economic freedom - Editorial in the Washington Times
- What is Crony Capitalism? - Video from Prager University