crony capitalism

So thanks to a recommendation by my Dad I have been on a reason.com kick.  This article is one of the best articles I have read about capitalism in America today.  It is entitled Let's Take the "Crony" Out of "Crony Capitalism."  As I mentioned in my last post, we currently do not have free markets in most industries in America.  Over-regulation has made many markets pseudo-competitive.  Because of these regulations, there are tremendous capital and legal barriers to entry, making it very difficult for new firms to enter the market.  And guess what?  Established firms are completely for this.  Less competition for them.  Thats why you see auto-makers lobbying for stricter regulation for emissions, insurance companies in favor of Obama's health care bill and energy companies in favor of cap and trade.  In a truly free market all these ideas would be fought by these companies because it drives up their costs.  But in today's crony-capitalist America, the major corporations understand that these regulations mean it will be harder for competitors to enter their market and that they will cement their market share.  Then can then game the system down the road.  As long as we try to put these huge regulatory regimes in place, it is the inevitable outcome.  Anyway, the article does a better job of articulating that point than I do, so please read it.