Comments on: Corruption and capitalism http://www.wadstrom.net/2009/03/17/corruption-and-capitalism/ A Swedish/European Entrepreneur in Silicon Valley Fri, 21 May 2010 14:19:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Wille http://www.wadstrom.net/2009/03/17/corruption-and-capitalism/comment-page-1/#comment-5556 Wille Tue, 17 Mar 2009 10:53:02 +0000 http://www.wadstrom.net/?p=236#comment-5556 Not all capitalists are for free markets. In fact, there is a vested interest to gain special favour, protectionist measures (the Detroit car makers for decades), regulatory barriers of entry (banking industry, anyone?).. People sometimes mistake capitalism and markets for the actors working within them - they are not one and the same, and their interests are rarely aligned (which company wants more competition for themselves?). It is a bit bizarre to see how some companies like Fannie and Freddie for years have received government grants and similar favours, then turned around and used those same favours to pay lobbyists and ask for even more special favours. It is almost a system where politicians subsidize market actors so that they can get the subsidies back as bribes through the backdoor. Not all capitalists are for free markets.
In fact, there is a vested interest to gain special favour, protectionist measures (the Detroit car makers for decades), regulatory barriers of entry (banking industry, anyone?)..

People sometimes mistake capitalism and markets for the actors working within them – they are not one and the same, and their interests are rarely aligned (which company wants more competition for themselves?).

It is a bit bizarre to see how some companies like Fannie and Freddie for years have received government grants and similar favours, then turned around and used those same favours to pay lobbyists and ask for even more special favours.
It is almost a system where politicians subsidize market actors so that they can get the subsidies back as bribes through the backdoor.

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