Creating something that people want is how one gets wealthy in a market economy. Sadly, there’s another way to get rich. It’s called cronyism, and it can make billions for the lucky businesses that get government support — whether their products are profitable or not. In the process, the taxpayers foot the bill.
Taxpayer insurance against unprofitability takes many forms, from loan guarantees to grants, which provide a no-lose scenario for beneficiaries. If the business is profitable, then the corporation makes massive profits. If the business goes bust, then the taxpayers take a hit. Either way, the crony capitalist wins.
Perhaps the most prominent case of cronyism in modern history is Elon Musk….”
The Center for Business and Responsible Government (CBRG) is a non-partisan organization dedicated to highlighting cronyism and its effect on American taxpayers and policy. We believe public officials should establish an even playing field for all businesses to compete in the marketplace, not just those special interests who line their pockets.