Crony Capitalism: Right Here, Right Now, 37 Harvard Journal of Law & Public Policy 5 (2014)
Crony capitalism describes an economic and political
environment in which pursuing and obtaining government
favors is both part of everyday life and a necessary protocol
for succeeding in business. Where crony capitalism exists,
notions of meritocracy have been displaced by notions of
cronyism or kleptocracy or something similar. Crony
capitalism has ebbed and flowed in our history, and it seems
as though today it is on the rise.
Just looking at late 2012 and early 2013, one could talk for
hours about the examples of crony capitalism—for example,
the $78 million tax write-off in the new tax bill for NASCAR
drivers. That write-off may be very popular—I don’t know—
but it is crony capitalism.
The tax benefits for the New York Liberty Zone provide
another example. Yet another was the tax victory given to
companies operating in American Samoa by Chris Dodd—a
former Connecticut Senator—who now represents Hollywood’s
movie studios. He got those companies a two-year extension on
a provision allowing film and television producers to expense
the first $15 million of production costs incurred in the United
States—a kind of wholesale crony capitalism.
Date of Authorship for this Version
Macey, Jonathan R., "Crony Capitalism: Right Here, Right Now" (2014). Faculty Scholarship Series. Paper 4829.