Crony capitalism is a pejorative term describing an allegedly capitalist Capitalism is an economic and social system in which capital, the non-labor factors of production , is privately controlled;[citation needed] labor, goods and capital are traded in markets; and profits distributed to owners or invested in technologies and industries economy in which success in business depends on close relationships between businesspeople and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth.
Crony capitalism is believed to arise when political cronyism Governments are particularly susceptible to accusations of cronyism, as they spend public money. Many democratic governments are encouraged to practice administrative transparency in accounting and contracting, however, there often is no clear delineation of when an appointment to government office is "cronyism". It is not unusual for a spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving In economics, a public good is a good that is non-rivalrous and non-excludable. This means, respectively, that consumption of the good by one individual does not reduce availability of the good for consumption by others; and that no one can be effectively excluded from using the good. In the real world, there may be no such thing as an absolutely economic and political ideals.
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