If you want to know what crony capitalism looks like

Look no further than Seattle, where the city council voted 9-0 to limit the number of rideshare drivers on the road. It is the first city in the country to do so.

These rideshare drivers were competing with taxi companies for business and thus injuring their profits. In the world of capitalism, the solution is to provide better service at lower prices with better quality.

In the world of crony capitalism, however, which is the world we exist in today, you get the city council or local government to regulate your competition.

When people talk about capitalism and government in the same sentence they don’t realize the irony; capitalism does not involve government in any way. Capitalism is the voluntary exchange of goods and services between two private parties. All government can do is make this transaction harder or ban it.

What just happened in Seattle is one industry using the force and coercion of the municipal government to injure their competition.  This would be akin to Tully’s pressuring the city council to limit the number of Starbucks shops in city limits or Dairy Queen getting them to limit the number of McDonald’s.

The irony is that people think this is government being benevolent by protecting a weaker competitor, but you will hear no talk of the taxis industry being driven by greed.

This is why you can’t have government regulate businesses, because the power of regulation becomes a tool in the hands of business, which they employ to control and manipulate the playing field in their favor at the expense of other competing businesses.

At the end of the day, this was a victory for a protected industry, not the customer.

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This entry was posted in Crony Capitalism, Government Subsidized Business, libertarianism, Taxes and Regulations and tagged , , , , , , , . Bookmark the permalink.

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