Thursday, September 8, 2011

Crony capitalism makes me sick

But don't we have an obligation to teach our students how to do it?  


  1. Crony capitalism is a type of all-pay auction. Thus you have an obligation to teach them to stay away from it, because it backfires.

  2. I agree that attempts at crony capitalism do result in more losers than winners.

    I would also add that, from my experience in the window business, the $1500 tax credit in 2010 helped our sales and revenue greatly, especially toward the end of the year. Since the credit was set to expire at years' end, many consumers took advantage of the free money, and September 2010 was our best sales month ever, locally and nationally.

    In 2011, demand has been far softer. Not only is the huge incentive gone (tax credit on windows went from $1500 down to $200), but anyone who anticipated needing windows in the near future acted in 2010.

    The resultant layoffs and other spending cuts probably haven't helped stimulate the economy much this year.