Tag Archives: corruption

DOUGHFACE

A literal doughface in the 1850s was a mask made of dough or papier-mâché. These were sometimes worn as a practical joke to frighten people. Political doughfaces were northern congressmen so spooked by the threat of civil war-“scared at their own doughfaces” as one critic put it-that they were willing to compromise with the South on the slavery issue. Southern politicians later adopted the term with the opposite meaning-colleagues from the South who didn’t defend slavery staunchly enough. Both sides despised doughfaces. Eventually, “doughface” became a general nickname for a politician whose principles were flexible on any issue-especially if money formed part of the equation.

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CRONY CAPITALISM


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a description of capitalist society as being based on the close relationships between businessmen and the state. Instead of success being determined by a free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by the ruling government in the form of tax breaks, government grants and other incentives.

On the other hand, capitalists believe that crony capitalism arises from the need of socialist governments to control the state. This requires businesses to operate closely with the government to achieve the greatest success.

Both socialists and capitalists have been at odds with each other over assigning blame to the opposite group for the rise of crony capitalism. Socialists believe that crony capitalism is the inevitable result of pure capitalism. This belief is supported by their claims that people in power, whether business or government, look to stay in power and the only way to do this is to create networks between government and business that support each other.

(from Investopedia.com)


In the news…
Romney’s ‘crony capitalism’ charge may ring true For leaders of both parties