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Crony Capitalism



"it can very seldom be reasonable to tax the industry of the great body of the people, in order to support that of some particular class of manufacturers"

   --  Adam Smith

Nespotism is giving favours to family
Cronyism is helping your friends

Changing tax rules, or leaving them vaugue, leads to crony capitalism, where businesses are eager to please government to not be slapped with a punitive tax.

"If the Football Association used its powers to do Manchester United favours, they would not be helping football. Similarly, ministers do not help business by using their powers to help particular businesses.Like football, business thrives on competition. It is the engine of progress, inspiring effort, innovation and the elimination of bad practice. But what is good for business is bad for individual businesses. Competition is the only serious problem a business faces. Eliminate it and, no matter how poor the favoured firm’s performance, profit is assured. A business with a ministerial buddy will seek to use this influence to stifle competition, helping itself but damaging the economy." - CityAm

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