Cronyism is any government-provided privilege to a particular business or industry and comes in a variety of forms including privileges such as monopoly status, favorable regulations, subsidies, bailouts, targeted tax breaks, and protection from foreign competition. A recent example was the government bailout of wealthy and well-connected banks in 2008. Whatever its form, cronyism destroys free markets. It allows the government to assume an expanded role for which it lacks the necessary market knowledge and adequate resources to properly regulate. It disrupts the free flow of resources, impedes economic progress and breeds corruption. On a larger scale, cronyism negatively impacts innovation, diminishes economic growth, and weakens the bonds of social trust. Free markets, on the other hand, provide greater benefits through mutual and voluntary exchanges, permitting maximized gains from trade. They promote innovation by allowing hard working and creative individuals to address needs in the market rather than focusing on new ways to obtain favors. Protecting against government-provided privileges is vital to protecting our economic freedom and supporting sound economic growth.

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Florida One Step Closer to Abolishing Corporate Welfare

Florida One Step Closer to Abolishing Corporate Welfare

Thanks to pressure from free market activists, a bill to abolish several major corporate welfare programs has advanced through the Florida House of Representatives. Florida lawmakers have passed a sweeping reform bill, H.B. 7005, which would essentially end government handouts to politically connected corporations in the Sunshine State. Specifically, the bill targets Enterprise Florida, a public-private … Read More
Florida Lawmakers to Vote on Key Corporate Welfare Bill

Florida Lawmakers to Vote on Key Corporate Welfare Bill

Lawmakers in Florida are considering a sweeping reform of the state’s tax incentive and corporate welfare policy in a new bill that would essentially end government handouts to politically connected corporations in the Sunshine State. House Bill 7005 would eliminate harmful corporate welfare spending on Enterprise Florida, a public-private partnership that hands out the taxpayer funds … Read More
Tax Extenders Benefit the Rich at Everyone Else’s Expense

Tax Extenders Benefit the Rich at Everyone Else’s Expense

If the 2016 election has taught us anything, it’s that Americans are fed up with Washington insiders living by one set of rules while the rest of us are forced to live by another. Unfortunately, it looks like some people still haven’t gotten the message, as Congress mulls the extension of $20 billion in tax … Read More

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