“Not only does it deny consumers more and better products and services, but they also may pay higher prices or higher taxes extracted by the corporate-government agreement. Moreover, economic growth slows as entrepreneurs pursue unproductive influence and capture activities rather than productive entrepreneurship. Cronyism also raises the specter of greater government control of the Internet and of the digital economy more generally. When policymakers dispense favors, they usually expect something in return. They may also become accustomed to having greater informal powers over the sector receiving favors.”

http://mercatus.org/publication/history-cronyism-and-capture-information-technology-sector

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