Occupy Wall Street & Capitalism: A Professor’s Response

The Occupy Wall Street movement expresses valid frustrations, but do the protesters aim their accusations in the wrong direction?

Economics Professor Chris Coyne draws the distinction between crony capitalism and legitimate capitalism. Crony capitalism is government favoritism fueled by handouts and is responsible for the plight of the 99%. Legitimate capitalism, on the other hand, uses competition to align consumer and producer interests and serves to improve everyone’s standard of living.

12 Comments

  1. Alex Moscoso

    pure capitalism to its finest, good video by this professor for putting an idea in place to constrain government with handouts, politically reasonable and effective. 

    Also there needs to be an understanding of a typical slider bar of capitalism vs (insert opponent here) as an example, communism. No country is typically communist (or whatever) or capitalist. There is only a certain area on a slider bar what a country is more towards or against. Similar to people being democrat or republican, some people are somewhere near the middle.
    Last, I think being less politically correct may help more people understand this issue. In my opinion I think corruption may be a better more effective word than crony capitalism.
  2. Matt Wavle

    Well said Alex.  Crony capitalism is a term that shouldn’t include "capitalism".  Perhaps "hijacking the free market" would be better understood than, say the term "graft".

  3. Matt Wavle

    Without the natural occurrences of both profits and losses, corporations won’t have the incentives they need to change, and will always be looking to fleece the taxpayers into bailing out their bad choices.  Sounds a bit like the 30 yr old bum living off of mom and dad.  Time to cut the cord.

  4. Brian Phillips

    One of the major problems we have these days is that far too many people don’t understand what capitalism is and automatically compare it to crony capitalism.

  5. taschrant

    Separate state from economy just like separating church and state.  Then we’ll have greater harmony.

  6. jgreene

    Awesome! The occupy folks proved to be misinformed as to who to rightfully direct their anger and argument.

  7. Grady Flanagan

    Of course they were misinformed. Its what the government wants. The less informed, the less they need freedom, the more they need government to wipe their asses.

  8. Jonathan LeVeille

    I think the video is really good. It is very true that OWS was directing their anger and frustration at the wrong target.

  9. Ashwin Katta

    Without the natural occurrences of both profits and losses, corporations won’t have the incentives they need to change, and will always be looking to fleece the taxpayers into bailing out their bad choices.  Sounds a bit like the 30 yr old bum living off of mom and dad.  Time to cut the cord.

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