Crony Congress

Did you know 47% of Congress members are millionaires?  And while in office they have all kinds of advantages to make them even richer while they’re in office:

  • Access to private information prior to key activities that make them money in the stock market
  • Earmarks placed in law codes to support their personal projects
  • Support for lobbies ensures they have cushy jobs after their “public service” is finished


How We’ve Devolved into the Current System of Crony Capitalism

In this interview with Bill Moyers, David Stockman, who first coined the term Crony Capitalism, explains what’s happened in the political-economic realm since his post as Budget Director under Reagan. The evidence that we’ve embarked on a “new system” has become more obvious with time. Beginning with the $20 billion bailout of the Mexican peso in 1994, progressing with the bailout of Long Term Capital Management in 1998 and the recent bailout in 2008 with the $700 billion Wall Street package, Stockman explains that the benefactors are not limited to those being bailed out. The investors who financed those failures are the ones who’ve really benefited.  These are the so-called cronies, who have ties to those in high positions, capable of bending laws to ensure the majority of profits go to themselves, while losses are always taken by the tax payers.