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misesmedia: What Is Cronyism?

  • Thursday, 04 February 2021 21:46
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Activists blame “capitalism” for the world’s biggest problems, like the high costs of healthcare. Some even argue that economics itself is simply propaganda for businesses to exploit workers. Government schools often celebrate regulations, subsidies, and other interventions, because they protect consumers against “exploitative” businesses and capitalist “greed.” The truth is precisely the reverse. The profit-and-loss economy lowers prices and increases the quality of goods through competition, which benefits society as a whole. When government intervenes in this production of goods and services, it does so by passing laws and enacting regulations that benefit and favor certain businesses over others, all in the name of “protecting” the public. This granting of privileges and favored status to people because of their political power or connections is called cronyism. The beneficiaries of cronyism serve the politicians and bureaucrats who appointed them and not the consumers who buy the products from the regulated companies. For example, imagine you run a small business that produces vegetable soup. Your top priority is satisfying customers. A satisfied customer is a returning customer. To this end you choose your vegetables, recipes, packaging, and distribution based on your best estimates of what the consumer wants. If consumers like and value your vegetable soup, you earn profits. If consumers don’t value it, you suffer losses. Competition and business reputation ensures efficiency and happy customers. Now imagine that the government decides to regulate the vegetable soup industry. Bureaucrats, not knowledgeable businessmen, now decide the full process of making soups, mandating the quality of the vegetables, the type of ingredients, the techniques for making soup that can be used, and even how you can advertise your soup. To enforce these new regulations, the government requires licenses and compulsory inspections. As a soup producer, you must now spend considerable resources catering to political regulations. Although the government justifies its intervention in the name of protecting consumers from “bad” soup makers, the new regulations create compliance costs and barriers to entry. This reduces competition by injuring the smaller soup producers and helps the larger soup makers. In this way, the law restricts the supply of soup and raises prices, to the detriment of all consumers. Since bureaucrats make and enforce the regulations, it should come as no surprise to learn that Big Soup lobbied for the new rules that benefit them, hurt rivals, and reduce competition. The free market succeeds because competition makes businesses accountable to consumers. Cronyism doesn’t work because it favors politically connected insiders, hurts small businesses, and gives consumers fewer choices. Unfortunately, when cronyism fails—and it always does because it is based on favoritism and paybacks—we all lose. Most people think the answer to any economic problem is to get the government more involved, enact more regulations, appoint more committees, etc. The truth is precisely the reverse, we need less intervention in all areas. Questions Can you think of a time when the government created a problem, and then gave itself more power or tax dollars to "fix" it? Do you think this is a moral hazard? We often hear people talk about the need to "get money out of politics" by banning lobbying in government. If you were a business owner, would you have an interest in trying to have a say in the law writing process, or would you trust politicians without experience in your industry writing the laws? Do you think the problem is lobbying, or the amount of influence the government has to decide who wins or loses in business? Additional Reading "Crony Capitalism and the Transcontinental Railroads" by Ryan McMaken https://mises.org/library/crony-capitalism-and-transcontinental-railroads "Coca-Cola, Cronyism, and the War on Drugs" by Chris Calton https://mises.org/wire/coca-cola-cronyism-and-war-drugs "The Middle of the Road Leads to Socialism" by Ludwig von Mises https://mises.org/library/middle-road-leads-socialism "What is Fascism" by Lew Rockwell https://mises.org/library/what-fascism-1 Book 'Crony Capitalism in America: 2008 - 2012' by Hunter Lewis https://mises.org/library/crony-capitalism-america
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The divergence between paper silver prices and the real cost to actually buy ounces of physical silver continues to grow! While the paper silver price has been smashed this week from over $29 down to $26 this week, premiums (if US bullion dealers even have silver coins and bars) are 20% or more if there is even supply available for physical metal. Silver Coin Sites Seize Up as Buying Frenzy Takes Hold https://finance.yahoo.com/news/silver-retail-sites-grind-halt-190456039.html This is also the case for the SLV and the Sprott Physical Silver Trust (PSLV). While enormous net capital inflows are going into both the SLV and the PSLV, the PSLV is gaining in percentage terms for its performance against the SLV and the PSLV now also trades at a slight premium to its net asset value (NAV). Amid the Silver Mania, Investors Are Turning to the PSLV Trust https://www.nasdaq.com/articles/amid-the-silver-mania-investors-are-turning-to-the-pslv-trust-2021-02-02 Track the PSLV's discount or premium to NAV here: https://www.sprott.com/investment-strategies/physical-bullion-trusts/silver/net-asset-value-premium-discount/# Jason also talks about why the US Mint cannot source physical silver blanks from sources outside the US and how the US Mint is run very similarly to the Department of Motor Vehicles. Commit to tipping us monthly for our hard work creating high level, thought provoking content that includes interviews with top experts, analysis and short videos about investing and the economy https://www.patreon.com/wallstformainst​ Please visit the Wall St for Main St website here: http://www.wallstformainst.com/​​​​ Follow Jason Burack on Twitter @JasonEBurack Follow Wall St for Main St on Twitter @WallStforMainSt You can also checkout the Wall St for Main St Facebook Fanpage at http://www.facebook.com/WallStforMain...​ or the Wall St for Main St Facebook Group where you can learn and join in on the conversation! Also, please take 5 minutes to leave us a good iTunes review here! We only have about 86 5 star iTunes reviews and we need to get to our goal of over 100 5 star iTunes reviews asap! https://itunes.apple.com/us/podcast/w​​​​... If you feel like donating fiat via Paypal, Bitcoin, Gold Money, or mailing us some physical gold or silver, Wall St for Main St accepts one time donations on our main website or through Paypal. Send one time donations to our Paypal to the email address: [email protected] Donate Crypto Currency to WS4MS: Send Bitcoin to: 1N5iDrazojYX5rWxmoyp982RDXJzJrFoPC Send Ethereum (ETH) to: 0x748dD59fA5d5dF80E8C0038DD4F60DAb810fe61a Send Litecoin to: MW7g44j5FX9CYEkvfPvxsW5dFjHY84yup4 Send DASH to: XuEEhWptwf1XxP2nFYQxmBfBBJYehqRoBJ Send Zcash (ZEC) to: t1MGcxyWpiH6JeyF9nnWHw9poRpvTW4PT6S Send Bitcoin Cash (BCH) to: qr7mp7f053rwnpxalxljl3f9x5tulzv53ya88d7wch Wall St for Main St is also available for personalized investor education and paid research work (we write research reports and teach). Please email us to learn more about the research work we offer at: [email protected] **DISCLAIMER- ANYTHING MENTIONED DURING THIS AUDIO OR SHORT VIDEO RECORDING IS FOR INFORMATION & EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT ADVICE. JASON BURACK AND HIS GUESTS ARE MERELY STATING THEIR OPINIONS ON DIFFERENT TOPICS RELATED TO INVESTING, THE ECONOMY, MARKETS OR COMPANIES. PLEASE TALK TO YOUR INVESTMENT ADVISOR AND DO ADDITIONAL RESEARCH AND DUE DILIGENCE ON YOUR OWN BEFORE INVESTING AND MAKING IMPORTANT INVESTMENT DECISIONS.- DISCLAIMER**
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Ethereum tumbles, but don't worry | Elon Musk Pumps Dogecoin | Gold and Silver Plummet Against "Strong" USD | Altcoin Updates: Injective Labs, Ocean Protocol | Bondly Finance & Logan Paul NFT Partnership | Mysterious $1 million Enjin NFT: Diamond Hands | China's BSN Integrates with Cosmos Frontier, Avalanche, STP, VISA, First Boulevard news | Uphold to Launch Euro Crypto Cards via Optimus #ethereum, #bitcoin, #crypto, #btc, #eth, #cryptocurrency, #wsb, #reddit, #gamestop, #elonmusk, #tesla, #dogecoin, #doge, #aave, #gold, #silver, #peterschiff ? ALTCOIN TRADING SIGNALS - https://t.me/AltcoinBuzzChat ? TOP CRYPTO NEWS - https://www.altcoinbuzz.io ? FREE NEWSLETTER - http://eepurl.com/dnIEz1 ? TWITTER - https://twitter.com/altcoinbuzzio ? FACEBOOK - https://www.facebook.com/altcoinbuzzio Cryptocurrency And Bitcoin Visa Card - GET $25 FREE ON ► CRYPTO.COM https://platinum.crypto.com/r/ab *Code is AB Trade On Binance! ► https://www.binance.com/en/register?ref=UAMKZ47P *Code is UAMKZ47P Trade On AAX ► AAX EXCHANGE https://www.aax.com/invite?inviteCode=zpqm9Fn03yVG CRYPTOCURRENCY MARKET PRICES AND DATA ► COINGECKO https://gcko.io/altcoin-buzz ? NOTE If you use the above referral links, we receive a commission at no additional cost to you. ⏰ Timestamps 0:00 Ethereum tumbles, but don't worry 1:24 Elon Musk Pumps Dogecoin 3:38 Gold and Silver Plummet Against "Strong" USD 6:59 Altcoin Updates: Injective Labs, Ocean Protocol 7:54 Bondly Finance & Logan Paul NFT Partnership 9:40 Mysterious $1 million Enjin NFT: Diamond Hands 10:34 China's BSN Integrates with Cosmos 11:54 Frontier, Avalanche, STP, VISA, First Boulevard news 14:13 Uphold to Launch Euro Crypto Cards via Optimus References: https://twitter.com/BillyLuedtke/status/1357084375297490947 https://twitter.com/crypto_rand/status/1357256132159496192 https://twitter.com/elonmusk/status/1357269755112148993 https://twitter.com/elonmusk/status/1357236825589432322 https://twitter.com/TheStalwart/status/1357356814959063049 https://www.investing.com/news/gold-silver-down-thanks-to-strong-dollar-us-stimulus-moves-forward-2408721 https://twitter.com/PeterSchiff/status/1357333064075083779 https://twitter.com/InjectiveLabs/status/1357292300850900993?s=20 https://blog.injectiveprotocol.com/injective-partners-with-ocean-protocol-to-create-novel-data-derivative-products/ https://twitter.com/BondlyFinance/status/1357082240841261057?s=20 https://bondlyfinance.medium.com/bondly-announces-new-partnership-with-skale-c7e0194696af https://bondlyfinance.medium.com/logan-paul-partners-with-bondly-finance-to-bring-nfts-to-the-maverick-metaverse-2fbbbc3418b4 https://www.coingecko.com/en/coins/bondly https://twitter.com/Altcoinbuzzio/status/1357255632496197633/photo/3 https://cointelegraph.com/news/china-s-blockchain-service-network-announces-cosmos-integration https://twitter.com/bsnbase/status/1356262290555691015?s=20 https://twitter.com/FrontierDotXYZ/status/1356966591976542208?s=20 https://blog.frontierwallet.com/frontier-x-avalanche/amp/?__twitter_impression=true https://twitter.com/STP_Networks/status/1357208479619026947?s=20 https://medium.com/stp-network/stp-launches-community-governance-feature-cf1169e67268 https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.17721.html https://cointelegraph.com/news/visa-announces-neobank-pilot-focused-on-getting-crypto-tools-to-black-community?utm_source=Telegram&utm_medium=social https://cointelegraph.com/news/uphold-to-launch-crypto-cards-in-europe-with-new-acquisition?utm_source=Telegram&utm_medium=social https://uphold.com/en/blog/uphold-to-launch-crypto-enabled-cards-across-europe-following-acquisition-of-optimus-cards-uk https://www.coindesk.com/sino-global-shipping-bitcoin-mining-nasdaq-price Disclaimer: The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the content creators/reviewers and their risk tolerance may be different than yours. Altcoin Buzz is not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Please do your own due diligence and rating before making any investments and consult your financial advisor. The information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.
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Profit Maximalist is the weekly show for crypto traders. Hear from the largest funds, top traders, best analysts, and key players in the crypto market. Drop a like if you enjoyed the show! ► On today's episode I give a market update for Bitcoin's bullish trend, explain the Bitcoin liquid supply change chart which you can find at glassnode.com, breakdown how previous cycles have played out, and investigate what two massive Bitcoin investors are doing with their money. Show Sponsors: ►Bybit $500 deposit bonus for Bitcoin exchange: https://www.bybit.com/en-US?affiliate_id=1470&group_id=0&group_type=1 ► Sportsbet is the best place to game with your Bitcoin & win with your favorite sports teams: https://coingaming.io/ ► Use Matcha to get best prices on decentralized exchange trades: https://matcha.xyz/luke ► Hit subscribe so you don't miss an episode. Remember to turn POST NOTIFICATIONS ON so you NEVER miss a video. Appreciate you taking the time to tune in! ►Follow me on Twitter: https://twitter.com/VentureCoinist ►Listen on iTunes: https://podcasts.apple.com/us/podcast/the-coinist-podcast/id1350247761 ►Listen on Spotify: https://open.spotify.com/show/7v3JVAhRtnWOgT319NFD0A ►Listen on any platform: https://link.chtbl.com/AudioVersion #Coinist #Bitcoin #Ethereum
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