n. Crony capitalism is a colloquial term describing a "market economy" in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism to connected businesses in the distribution of legal permits, government grants, special tax breaks, and so forth. This favoritism is rewarded by campaign contributions or outright kickbacks to politicians or their supporters. As such, it creates an oxymoron of sorts, in that success of a business in a free market (capitalism) does not depend on free-market forces. It is also a obvious source of corruption of both business and government.
In the United States, Fannie Mae and Freddie Mac are examples of Crony Capitalism. Government backing let Fannie and Freddie dominate mortgage underwriting. The politicians created the mortgage giants, which then returned some of the profits to the politicians - sometimes directly, as campaign funds; sometimes as "contributions" to favored constituents.
door Dan Weyandt 5 oktober 2011
7 Words related to Crony Capitalism

Dagelijkse gratis email

Vul hier je e-mailadres in en ontvang elke ochtend gratis het Urban Woord van de Dag!

De e-mails zijn afkomstig van daily@urbandictionary.com. We sturen nooit spam.

×