Need Evidence for Crony Capitalism and Bloated Government?

“It’s no surprise that in an era of massive government spending and rampant cronyism that the top five counties in the U.S. with the wealthiest households are all suburbs of Washington, D.C.”

https://www.ac2news.com/2018/12/need-evidence-for-crony-capitalism-and-bloated-government/

SEE:

Woe unto you that are rich! for you have received your consolation

Rich men, weep and howl for your miseries that shall come upon you

 

Richard Duke:

Monetary inflation is affected by who gets the money and credit first and who gets it last. As fiat money is created by central banks, private banks are in a position to expand the amount of loans they make. The wealthy have established relationships with the banks, and they have the real estate and assets to provide collateral for the loans. Large, established companies and wealthy individuals are in favorable positions relative to small businesses and people with low or average incomes. The loans allow big companies and wealthy individuals to invest in capital goods during the boom phase of the business cycle. Central banks thereby create artificial inequality and poverty. This is the primary Cantillon effect of redistributing wealth.”

Thornton shows that the biggest winners come from the Federal Reserve and the bank system’s creation of newly created currency and credit are the U.S. Government, its large contractors, such as weapons manufacturers, big banks, and Wall Street. The losers are also revealed: the labor class consisting of private-sector workers, those on pensions or fixed incomes.

Review by Richard Duke on the Mises Institute website of the book: The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century by Dr. Mark Thornton