Crony capitalism is when government insiders and big businesses team up to screw everyone else. Instead of fair competition, connected firms snag fat contracts, subsidies, or regulatory free passes, while innovative small businesses get crushed.
The 2021 Infrastructure Investment and Jobs Act threw $17 billion at port upgrades, but guess where it went? A 2024 Wall Street Journal investigation revealed 30% of those funds landed with contractors tied to local politicians—not the best or cheapest bidders. Ports like Los Angeles and Savannah are stuck with outdated cranes and shallow berths, choking on modern mega-freighters. Result? Skyrocketing costs and endless delays.
The trucking industry, hauling 70% of port freight, is suffocating too. Cronyism blocks game-changers like electric trucks, driverless tech, and blockchain logistics. Autonomous trucks could solve the 90% driver turnover crisis (American Trucking Associations, 2024) and slash fuel costs, but union-backed regulations, pushed by well-connected lobbyists, keep them off the road. Meanwhile, China’s driverless trucks are already rolling.
