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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.
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