Crony Capitalism vs Entrepreneurial Capitalism

Was having a chat with a friend the other day about capitalism.  Apparently, there is a lot of chatter on social media about the ‘end of capitalism’.  Other phrases used for this: ‘post-capitalism’ or post-growth’ or ‘post-capitalist economy”.

There is a quote that I love.  Comes in handy when two people seem to be having an argument.  One can easily help sort out an argument by using this.

“If you want to converse with me, define your terms.”

• • Voltaire

Important when it comes to discussing capitalism.  Odds are that if each person arguing, one for capitalism and one against; if each defined clearly what they thought capitalism was, the other might agree with their argument. 

Here are a couple of definitions that might help:

Crony Capitalism

The meaning of CRONY CAPITALISM is an economic system in which individuals and businesses with political connections and influence are favored (as through tax breaks, grants, and other forms of government assistance) in ways seen as suppressing open competition in a free market.

A bit more:

‘Crony capitalism’, sometimes also called simply cronyism, is a pejorative*(*belittling) term used in political discourse to describe a situation in which businesses profit from a close relationship with state power, either through an anti-competitive regulatory environment, direct government largesse, …

And here is how I think of capitalism:

“Entrepreneurial capitalism is a form of capitalism that emphasizes the role of entrepreneurs in creating new businesses and driving innovation. It is characterized by a focus on small and medium-sized enterprises (SMEs), which are often seen as the engines of economic growth and job creation. In entrepreneurial capitalism, individuals with innovative ideas and a willingness to take risks start new businesses, creating new products and services that meet the needs of consumers.

This form of capitalism is often seen as the most pure and dynamic, as it allows for the free flow of ideas and resources, and the ability to adapt quickly to changing market conditions. Entrepreneurial capitalism is also associated with the concept of “creative destruction,” where old industries and businesses are replaced by new ones, leading to a more efficient allocation of resources and a more innovative economy.

(AI Generated answer) 🙂

This is one example but an important one considering the current state of affairs in the world.  Many young people think that socialism or communism might be a solution to what currently ails the world.

Again, one needs to define terms.  What is your concept of socialism? 

And if you destroy both sorts of capitalism, is that good?  Who is going to create the products that we all need to get through life.  Who are going to be the innovators.

The Chinese have a communist/socialist state. But they have, over the years squashed any sort of individualism, and as such, no innovation, no entrepreneurialism.  So, they have to steal ideas from capitalistic countries. Duh.

Pretty sure anyone with extreme views will not get this far in the article.  If you get this far and still feel the need to tear down ‘capitalism’, please try not to ‘throw out the baby with the bathwater’.

‘Define your terms!’