Munger and Villarreal-Diaz’s “The Road to Crony Capitalism” argues that market-oriented capitalism is transformed into pro-business interventionism because capitalists often find that rent-seeking earns high returns. But prudence will say: “Despite the copious money, this rent-seeking probably is not going to work out well for you in the long run. It will foster destructive consequences for all aspects of your company, far beyond this individual act.” The history of Enron documents the catastrophic result of such contra-capitalist subversion.

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