Crony Capitalism Quotes
Roosevelt was running again for the presidency, however this time as a Third Party Candidate. He lost to Woodrow Wilson but outpolled the Republicans. This was the Third Party performance since Abraham Lincoln.
Abrams originated this famous phrase which many have been used subsequently for various “socialized” government benefits that were available to the rich but not the poor. He was referring to the fact that at the time, the government provided housing assistance to the rich by having federally insured mortgages and granting tax deductions for the interest in home mortgages, but there was no assistance to the poor who could only afford to rent and had no tax deductions nor was there any federal public housing assistance. During the Great Recession the phrase was often used when the government gave bail out money to General Motors and the largest banks who were close to bankruptcy, but the landscaping gardener or the hot dog vendor whose business was falling because of the recession were told that is the capitalist system—there are some winners and some losers. The government officials who advocated the bailout did not disagree about the fairness and appropriateness of the Abrams phrase but if they had not bailed the banks out, the entire economic system of the country would probably have collapsed and the ensuing depression would hurt the average worker and the poor even more. Related to the recent “too big to fail” concept.
In this context, “rent" means payment is required for the use or right to use anything such as using land for a pipeline, for mining, prospecting for oil, the rights to fish for caviar sturgeon, erecting a building, obtaining an official document, etc. The Russian economic system and culture has created a striving for getting paid to grant rights as opposed to getting paid for making something, creating something, or performing a service for someone. In the breakup of the Soviet Union, some individuals obtained (by various means) the right to charge rent to others for much of the great trove of Russian land, waters and other natural resources. They became billionaires – oligarchs – and many are still paying off government officials to control those rights.
Between the politicians and the financial industry lobbyists the laws are written so that there is sufficient room for enough self dealing so that members of Congress can get rich using methods that are questionable but have been legislated as legal and the Congressional rules have been written so that they are “not unethical”. Many members of Congress leave the institution much wealthier than when they entered but have received salaries that are insufficient to build that kind of wealth. Many then accept lobbying or other jobs at very high pay representing the people and corporations who have been the subjects of their legislative efforts. Other members do not avail themselves of the “legal” self dealing as the practice is not universal.
Owner of one of the only 2 Mexican Television Networks. Pemex is the only oil company in the world, government or private, that loses money.
