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CHAPTER 14: CRONYISM AND BIG GOVERNMENT 1. Stigler, “Theory of Economic Regulation.” 2. Fred S. McChesney, “Rent Extraction and Rent Creation in the Economic Theory of Regulation,” Journal of Legal Studies 16 (1987): 101–18; Fred S. McChesney, Money for Nothing: Politicians, Rent Extraction, and Political Extortion (Cambridge, MA: Harvard University Press, 1997). 3. Hayek, Road to Serfdom. 4. Geoffrey Brennan and James M. Buchanan, The Reason of Rules: Constitutional Political Economy (Cambridge: Cambridge University Press, 1985). CHAPTER 15: LIBERALISM VERSUS CRONYISM 1. Mokyr, Lever of Riches; Landes, Wealth and Poverty of Nations. CHAPTER 16: ECONOMIC AND POLITICAL SYSTEMS 1. Edelman, Symbolic Uses of Politics. 2. Ibid. 3. Mises, Human Action, 1–2. 4. Adam Smith, The Wealth of Nations (New York: Random House, Modern Library, [1776] 1937). 5. Mokyr, Lever of Riches; Landes, Wealth and Poverty of Nations. 6. Olson, Rise and Decline of Nations. 7. Randall G. <strong>Holcombe</strong>, “Crony Capitalism: By-Product of Big Government,” Independent Review (forthcoming, 2013). 8. Mises, Human Action, 2. 9. Ibid. NOTES 131
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LIBERALISM AND CRONYISM Two Rival P
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LIBERALISM AND CRONYISM: TWO RIVAL
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CONTENTS Introduction 1 Chapter 1:
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INTRODUCTION People often see polit
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who have the power to make decision
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CHAPTER 1: LAYING A FOUNDATION Befo
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hijacking of the term to describe a
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esources can be taken from some for
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suffers from “market failure,”
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is a group of cronies in a dictator
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ecause it permits voluntary exchang
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people’s economic well-being. The
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consumer demands. Examples of rent-
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the Politburo and the needs of conn
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consider the benefits and costs of
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upon state privilege and disproport
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their loyalty to the socialist stat
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cronyism from gripping every area i
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communism are well documented and w
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Accountability was embodied by refo
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despite comprising only 3 percent o
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CHAPTER 5: FASCISM Fascism, the pol
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use the sword of the Nazi state to
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planners created a back door for in
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CHAPTER 6: CORPORATISM Corporatism
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puts men and their possibilities in
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that this form of guided capitalism
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therefore provide sufficient benefi
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CHAPTER 8: PROGRESSIVISM Progressiv
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people who argue for limited govern
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Security, Medicare, and Medicaid do
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the direct election of senators, ch
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argue for narrow individual interes
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their roots to diverse sources of i
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promises to assume a company’s de
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enefits for his former venture capi
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prices of firms within the textile
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ment the power to make decisions an
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of social justice, cronyism has an
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for women in the twentieth century,
Page 89 and 90: ecause it advocates granting these
Page 91 and 92: should pay the same as comparable b
Page 93 and 94: way, the US government replaced the
Page 95 and 96: an individual, social justice advoc
Page 98 and 99: CHAPTER 12: CRONY CAPITALISM AND DE
Page 100 and 101: subsidies, political connections di
Page 102 and 103: CHAPTER 13: INDUSTRIAL POLICY The t
Page 104 and 105: “cottage industries” that clust
Page 106 and 107: of complex systems. He applied this
Page 108 and 109: South Korean industrial policy gave
Page 110: The degree to which Japan’s and S
Page 113 and 114: to get involved in lobbying to prot
Page 116 and 117: CHAPTER 15: LIBERALISM VERSUS CRONY
Page 118: that power will arise with another
Page 121 and 122: with power support each other to ma
Page 123 and 124: an incentive to cooperate for the b
Page 125: environmental movement often advoca
Page 129 and 130: 6. Ludwig von Mises, Human Action,
Page 131 and 132: 12. James Heinzen, “The Art of th
Page 133 and 134: CHAPTER 5: FASCISM 1. Peter Temin,
Page 135 and 136: CHAPTER 8: PROGRESSIVISM 1. Terry L
Page 137 and 138: 16. Bruce Yandle, “Bootleggers an
Page 139: 3. Eamonn Fingleton, “Japan’s I
Page 143 and 144: Stigler, George J. “The Theory of
Page 145: ABOUT THE PUBLISHER The Mercatus Ce
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