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Wednesday, January 11, 2012

Why Crony Capitalism

Is Not Free Enterprise


You know someone enterprising when you see them. They make stuff and sell it- or they have a professional service to offer that people want to pay for. Generally making stuff requires manufacturing expertise, skills, sometimes machinery or capital expenses and improvements, etc. It may require a marketing team to get the stuff to market to sell it, an advertising budget and a lot of sales guys who become sales executives. It may require assessing demand and supply to figure out if the market is saturated. It may require shipping or transport costs or export costs. Crony Capitalism is the investment worlds way of making money off other people's creativity feeding off those who are being enterprising. Romney wants you to think that the Free Enterprise system is on trial. It isn't. His Crony Capitalism where venture capital guys or arbitrage guys who make nothing but pilfer off other people's creativity might be. What has Mitt ever made to make his fortune besides deals? He is a deal guy- and some of them threw thousands of people on the street. When you make nothing, you create nothing, you are not a net net wealth creator- you are a looter. If you look at the kind of billions floating around the Mormon world you kind of get the picture.

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