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A conversation for business leaders on how crony capitalism under the Trump administration distorts markets, undermines fair competition, erodes public trust in democratic institutions, and what can be done to counter it.

Once heralded as the world’s leading free-market economy, the United States is increasingly facing criticism over what many see as a new era of corruption and crony capitalism. Recent examples of self-dealing by administration officials and family members, along with selective regulatory enforcement, pardons to donors, mercurial tariff policies, and direct government involvement in private companies are fueling concerns across the political spectrum that the playing field is tilted toward those aligned with the president. Those in the private sector willing to use their financial resources to curry favor with the White House only make matters worse.

Crony capitalism is a system in which political power and private enterprise become entangled, and proximity to those in power matters more than merit or market performance. It is an amoral, principles-free, transactional approach to governance that prioritizes personal or political gain over the public interest. While the United States has never been immune to cronyism, we are in a new era where political favoritism, not innovation, determines success.

Cronyism imposes real costs on small and medium-sized enterprises, which find themselves competing on an uneven playing field. When the federal government opaquely selects “winners”, it disadvantages competitors—particularly startups and smaller firms that lack political access. Empirical evidence consistently shows that countries with higher levels of corruption experience weaker economic growth and greater market volatility. While safeguards against such practices exist in U.S. law and custom, oversight procedures and ethics norms are being disregarded.

Speakers:

• Thomas Berry, Director of Constitutional Studies, Cato Institute
• Jeff Smulyan, Chief Executive Officer, Emmis Corporation
• Elizabeth Doty, Executive Director, Third Side Strategies
• Robert Maguire, Vice President for Research and Data, Citizens for Responsibility and Ethics in Washington
• Richard Eidlin, Business Pillar Consultant, the Horizons Project

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