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Cake day: June 13th, 2023

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  • What you’re describing isn’t capitalism per se, but a free market. They tend to be correlated, but you can have either one without the other. Capitalism strictly speaking is about private ownership of production—when private investors control industry and reap all the profits after wages and taxes.

    Crony capitalism is when capitalists influence the state to reduce wages and taxes, and to manipulate the market at the expense of rival investors. It tends to be the outcome in any state where spending money to influence policy generates a positive return (i.e., most of them).