Crony Capitalism and the Crisis of the West

“As Greece sinks toward a financial abyss—and Portugal, Italy and Spain sit on the edge—can we in the United States consider ourselves safe?

Fundamental economic numbers offer little reassurance. At 8.6% of gross domestic product, the U.S. budget deficit is just under Greece’s (9.1%) and equal to Spain’s. U.S. debt, at 103% of GDP, is just below Portugal’s—which first asked for a European Union bailout in 2011—and 58% larger than Spain’s, which might soon need one.

Yet Americans should be concerned for a deeper reason. High deficits, high debt and unsustainable entitlements are symptoms of a common disease infecting Southern Europe and the U.S. That’s crony capitalism, a problem with which I, having lived in Italy, am unfortunately familiar.”

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