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The John Batchelor Show

Corporatism vs. Capitalism: Analyzing Rent-Seeking and Regulatory Capture. Julia Cartwright discusses how younger generations often confuse corporatism (entangled government and business) with true capitalism. Rent-seeking involves businesses investing in

The John Batchelor Show

John Batchelor

Society & Culture, Arts, News, Books

4.52.8K Ratings

🗓️ 18 October 2025

⏱️ 7 minutes

🧾️ Download transcript

Summary

Corporatism vs. Capitalism: Analyzing Rent-Seeking and Regulatory Capture. Julia Cartwright discusses how younger generations often confuse corporatism (entangled government and business) with true capitalism. Rent-seeking involves businesses investing in politics for favors, like healthcare industry lobbying for subsidies. Rent extraction is when politicians threaten costly action to force business compliance (e.g., CAFE standards or tariffs). Solutions include sunsetting subsidies and banning sole-source government procurement.

1870

Transcript

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0:00.0

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0:31.6

This is CBSI in the world. I'm John Batcher with Julia Cartwright from the American Institute for Economic Research. What is to be done about crony capitalism or corporatism?

0:36.8

The first word that comes to mind right away is sunshine, sunlight.

0:41.3

Open the windows, let the light in.

0:44.3

Does that work, Julia?

0:46.3

Or are they more sophisticated than that?

0:49.3

In order to fix a lot of Americans' perception of capitalism, or as we've been discussing as

0:57.4

cronyism, is to work on just disentangling these two.

1:02.0

And an important component, which you just referred to, is some setting these various

1:07.6

subsidies or favoritism.

1:15.1

Businesses do not like being jostled or uninterrupted.

1:21.8

So what could happen is the administration can say, you have these subsidies right now,

1:30.3

but they're going to sunset over a particular amount of time. So this would give these businesses time to adapt to the lack of subsidy that they would potentially get. So they get a subsidy, but it's got a timeline to it,

1:36.6

and therefore they can't build their prices accordingly forever. Is that the way it works?

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