From The Road to Oligarchy by Daniel Greenfield in Sultan Knish
In most countries, starting a business does not begin with a great idea. It begins with connections. Knowing the right people is still important, but in most places it’s the most important thing.
Under the current American model, a company becomes successful and then begins to lobby Washington to gain a competitive advantage or to avert hostile lobbying directed at negating its existing competitive advantage. That is a perversion of free enterprise, but in much of the world companies begin lobbying first and then become successful. This is the model that has evolved under Obama. And it’s a familiar model to anyone doing business in Russia or China. Political connections come first and then the business becomes feasible.
Oligarchy is the inevitable outcome of an economic climate where the governments acts as a gatekeeper to the country’s customers. Measures that began as limited safety and fraud regulations have become a comprehensive political economic system that controls every aspect of every economic transaction.
The government creates markets. It creates companies and customers. It sets prices and taxes industries that it does not favor out of business. – See more at: http://sultanknish.blogspot.com/2013/03/the-road-to-oligarchy.html#sthash.rOFg8ry8.dpuf