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….