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The Case Against Crony Capitalism

Truth Matters Capitalism is a wonderful system that uses free competition to reduce prices, develop new technologies, and meet the needs of consumers. Crony capitalism, however, is a very different animal that uses government to limit competition and shaft the consumer. Take, for example, the healthcare industry. Pharmaceutical companies develop and market a drug. They have a patent which allows them to be the exclusive source of the drugs for a number of years. When the end of that exclusivity approaches, however, they often add an ingredient so the clock starts running all over again on their drug. When that happens, it’s ...

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