In this interview moderated by Carroll Ríos, Samuel Gregg the director research in Acton Institute Michigan, answered some questions about crony capitalism, mentioning how it works and his worries about this problem.
Gregg explains what crony capitalism is for him, contrasting it with the free market and political market; mentions how it works in the economy, what happens in the marketplace when it’s used and why he thinks it's a problem for the people doing business and entrepreneurs.
So crony capitalism in that sense shifts the emphasis away from the forces of mutual exchange and entrepreneurship, economic creativity, and much more towards the securing of favors from the government.”
The expert explains what causes crony capitalism and why businessmen should not involve in these practices, exposing what would happen to the market if this problem continues. He also points out the drastic results to the economy if people or companies start to look forward to applying crony capitalism.
Well in the economic terms it means that economies become less productive, less creative and growth tends to slow down as well and we all need growth if we’re going to be having flourishing societies.”
He concludes mentioning how this problem can be solved to improve the economy of a country.
Director of Research, Acton Institute
Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.
Universidad Francisco Marroquín