Amazon.com Battles Crony Capitalism

Canadian politicians scored populist points with voters by saying no to the American companies and by understanding that everyone -- the world over -- thinks they're different anyway from everyone else and use this to justify keeping this industry in Canadian hands.

This case is an example of how crony capitalism, using governmental forces, gets in the way of free market forces. A decade later, we see the folly of these policies, which is why this latest request to deny Amazon's ability to build a distribution center seems even more inane.

This same kind of perversion happens in America every day, whether in agriculture subsidies or automotive grants. There are times when strong governmental regulation helps set the "rules of the game" whereby market participants know how to compete.

But governments do a terrible job at picking winners and determining what is "special" about a company's culture that needs protection. Hopefully, this time around, the federal government will decide for lower prices, more jobs, and more tax revenue by giving Amazon permission to better compete with its Canadian rivals.

-- Written by Eric Jackson in Naples. Fla.

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