Crony Capitalism and Community Development Subsidies
June 12, 2013
It is difficult to gauge the success of community development programs. The funds often do not go to the neediest communities, and federal and state community development programs exhibit evidence of cronyism, with a small number of individuals and corporations benefiting at the expense of the wider public. In light of these findings, the best solution is to end these federal and state subsidies once and for all. Favoring certain businesses over others with government funds, even in less affluent communities, is a form of crony capitalism. An individual or corporation is gaining an advantage in the market place with the help of government money, and if the project fails to improve the community the taxpayers don’t get that money back.