Crony Capitalism 704

1.Explain the role that state intervention played in engendering crony capitalism, speculative financing, and leveraged debt.

2.Analyzing specifically at the housing crisis and increased speculative financing/debt financing seen in many businesses, which were themselves, in turn, bailed out by the Federal Government.

3.Write key statist interventions on the part of the Fed and other governmental actors which may have contributed to these outcomes.

4.Evaluate these factors in light of a biblical model of statesmanship.

Overview

Government economic interventioncan lead businesses to seek favor with the government and limit competition.

This is the essence of crony capitalism,wherebusinessesseekgovernment aid.Taxpayers, in turn, are forced to sponsor this behavior. This module takes a closer look at these interactions.

Learning Outcomes

Discuss key statist economic interventions in light of the required reading

Analyze key facets of crony capitalism as engendered by statist economic interventions

Evaluate speculative finance and statist intervention in light of a Biblical model of statesmanship

Reading & Study

Stockman: CHS. 19-26

Article: Crane, "Tesla, Dealer Franchise Laws, and the Politics of Crony Capitalism."

Article: Creighton, "Crony Capitalism."

Article: Dragos & Tarko, "Crony Capitalism: Rent-Seeking, Institutions, and Ideology"

Article: McDonald & Stokes, "Monetary Policy and the Housing Bubble."

Research Paper: Crony CapitalismAssignment