Daily Adams

Another way to ingratiate and manipulate policy

A powerful state invites the creative means of its own manipulation:

The problem that goes by the name of crony capitalism—more formally known as corporatism– has led to that most elusive of situations:  bipartisan outrage.  The idea that public policy –whether that for financial regulation (think Dodd-Frank,  too big to fail and the big banks ) or export subsidies (the Export-Import Bank and Boeing BA +0.7%) — would favor select, well-connected large firms,  has drawn the ire of everyone from left-leaning Nobel economics laureate  Joseph Stiglitz,  writing in the New York Times,  to David  Brat , the Tea Party candidate who upset Republican Majority Leader Eric Cantor.

To the concerns  that well-connected players can game the political system through lobbying or campaign finance, you can add another:   corporate philanthropy that might be a backdoor route to the same outcome.  You might call it crony philanthropy—corporate philanthropic donations made to funds or causes designated or directed by elected officials. By helping a cause or organization  with which an elected official is associated —and may be directly involved –donors have a chance to put themselves in the good graces of those same officials….

Via From Crony Capitalism To Crony Philanthropy? @ Forbes.

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