What's So Bad About Cronyism?

What's So Bad About Cronyism?
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Cronyism is a serious problem in the United States, but unfortunately it is still not very well understood. In this new essay, Jay Cost explains what it is, and why we should be so worried about it. By mingling private and public interests, cronyism costs us hundreds of billions of dollars per year and threatens to transform our republic into an oligarchy, where the rich dominate the middle class. Worse, modern cronyism has become embedded into the laws themselves, so politicians in Washington assume that such corruption is just the way things should be. To confront the dangers of cronyism, reformers need to think outside the box, paying special attention to how the political process functions.

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Jay Cost. What's So Bad About Cronyism?

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ENCOUNTER BROADSIDES Inaugurated in the fall of 2009, Encounter Broadsides are a series of timely pamphlets and e-books from Encounter Books. Uniting an 18th century sense of public urgency and rhetorical wit (think The Federalist Papers, Common Sense) with 21st century technology and channels of distribution, Encounter Broadsides offer indispensable ammunition for intelligent debate on the critical issues of our time. Written with passion by some of our most authoritative authors, Encounter Broadsides make the case for ordered liberty and the institutions of democratic capitalism at a time when they are under siege from the resurgence of collectivist sentiment. Read them in a sitting and come away knowing the best we can hope for and the worst we must fear.

Beginning

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On this basis we may say that when the One, or the Few, or the Many rule with a view to the common interest, the constitutions under which they do so must necessarily be right constitutions. On the other hand the constitutions directed to the personal interest of the One, or the Few, or the Masses, must necessarily be perversions.

By this reckoning, cronyism is a perversion of good government. Merriam-Webster defines cronyism as “the unfair practice by a powerful person (such as a politician) of giving jobs and other favors to friends.” When politicians use their authority to benefit their associates rather than the people at large, that is cronyism. Because you usually have to have money to make friends with politicians, cronyism is typically a type of oligarchy, which Aristotle defines as the rule of the wealthy.

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