Crony Capitalism, By-Product of Big Government – Publication by Randall Holcombe

Excerpt:

“When political interests are weak, entrepreneurs have an incentive to engage in economically productive activity, which results in economic growth. The economic growth that results from this productive activity is the rise of nations.

Over time, political interest groups grow and solidify, and establish relationships with those who have governmental power. As they do, success increasingly comes from the ability to use political connections rather than from engaging in economically productive activities, and when the power of political connections overwhelms the power of economic productivity, nations begin to decline.”