In this podcast clip from the “The Yaron Brook Show,” Yaron separates two main concepts of power, political power and economic power, and explains how they connect through cronyism.
“Political power is the power of a gun. It’s the power of coercion. It’s the power of force,” said Yaron. “You can’t say ‘no’ to a law. Once a law is passed, you either abide by it or you go to jail.”
In contrast, economic power essentially voluntary. “Economic power, the dollar, can’t force you to do anything,” he said. As consumers, we have the power to choose which products, services and goods we purchase.
“Wealth gives you economic power … economic power is the power to persuade, to convince,” explained Yaron, adding, “Now cronyism is when economic power is used in order to attain political power through special favors from government and regulations that protect you from competitors and so on.”