Uncle Milton argues, for the umpteeth time:
By definition free market capitalism is not crony capitalism…you could argue, probably with conviction, that there is no such thing as pure Free market capitalism (as there is basically no such thing as pure communism…)
As I told you before the concept of free market capitalism came about as a counter to crony capitalism wherein the king (or whatever ruler…) would grant special favors to his cronies. As with any human endeavor it has it’s flaws and needs checks and balances.
The problem is that the laissez faire minus the crony capitalism has never happened anywhere on Earth that I am aware of. Someone clue me in? Laissez faire capitalism is always, or nearly always, crony capitalism. The state is the only thing to throw the criminals in jail, and laissez faire gets rid of the state. The checks and balances in Milton’s model do not exist because the state is gutted, deregulated and corrupted by money.
The criminals themselves always seem to infest and corrupt what’s left of the laissez faire state. This pure, non-corrupt free market crap only works in textbooks and mathematical models.