Tuesday, March 15, 2016

Crony-ism

Free trade happens when a buyer and a supplier freely trade money for a product because each sees the transaction as good for him or her. The buyer will go to some other supplier if their product pleases him better or if that supplier can afford to sell it at a lower price. That supplier will change the product if people don't want it at the price he needs to get for it.

It's a good system and it works most of the time. But if some government worker (or dept.) makes a deal to buy an inferior product or an unreasonably expensive product with taxpayer money - because the supplier will do him a favor - then that is corrupt. That's crony capitalism. (Crony=chum)

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